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Can Zscaler Recover From Its 34% YTD Drop?

An ongoing trend of decelerating revenue growth rates is not a good look for Zscaler during the AI boom.

Can Zscaler Recover From Its 34% YTD Drop?

Published July 3, 2026 · Category: Finance

Overview

Zscaler's (NASDAQ: ZS) stock price has dipped by roughly 34% year to date as continued net losses and a decelerating revenue growth rate weigh down on the cybersecurity stock. The company may get a boost as its cybersecurity solutions can safeguard artificial intelligence (AI) agents, which are expected to become more popular. However, there are meaningful hurdles that can prolong this correction.

Image source: Getty Images.

When a stock delivers substantial year-over-year revenue growth, it's easier to look over high net losses and focus on the bullish thesis. However, those same losses become more central to a stock analysis once revenue growth slows.

Details

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Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.