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Zscaler Stock Surge: Is Now the Moment?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 5/30/2025, 5:03 pm ET 5/30/2025, 5:03 pm ET | 5 min 5 min read
Zscaler Stock Surge: Is Now the Moment? Thumbnail

Zscaler Inc. stocks have been trading up by 9.75 percent, driven by positive developments in cybersecurity market dynamics.

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Live Update At 17:03:25 EST: On Friday, May 30, 2025 Zscaler Inc. stock [NASDAQ: ZS] is trending up by 9.75%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Look at Zscaler’s Earnings

Effective trading isn’t about hitting the jackpot all at once; it’s about the consistent accumulation of gains over time. Many aspiring traders get caught up in trying to find the one deal that will set them for life, but this mindset often leads to unnecessary risks and missed opportunities. As millionaire penny stock trader and teacher Tim Sykes, says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” Instead of waiting for that giant leap in fortune, traders should commit to a strategy of regular, incremental profits, which ultimately leads to greater long-term success.

Zscaler’s latest quarterly results paint an impressive picture of growth. Improvements have not just stuck to the numbers – every layer of the financial cake has a story to tell. Revenue has jumped considerably, reflecting an effective business strategy in action. From $553.2 million a year earlier to $678 million in this quarter, it’s a notable jump. The revenue hike wasn’t a solitary show; earnings per share followed suit, rising from $0.71 last year to $0.84 this year.

What’s more fascinating is how the company’s foresight appears to be spot-on. Projections for Q4 suggest earnings of $0.79-$0.80 per share, coupled with revenue somewhere around $705 million to $707 million. Such foresight beats previous analyst expectations and hints at momentum continuing forward. Consequently, revised full-year guidance elevates anticipated growth figures beyond initial estimates.

The appointment of Kevin Rubin as financial helm is yet another bolt in Zscaler’s drone towards refined processes and strategic advances.

Understanding Company Financials

Zscaler’s financial strength is illustrated through several key ratios and metrics, each offering a peak through a different lens. Despite the notable growth in revenue, the company registers negative profit margins, although it’s not uncommon for growing tech enterprises prioritizing expansion. Gross margins sit firm at 77.8%, signaling strong profit potential once economies of scale set in deeper.

The balance sheet further verifies that Zscaler is on a steady course. High gross and operating revenues signal robust market capture, yet net margins indicate room for optimization. However, Zscaler showed a refreshing operating cash flow of $179M, in tandem with solid free cash flows of $164M. Such data suggests efficient capital management, rendering a promising base for future endeavors.

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Zscaler’s liquidity ratios – a current ratio of 1.2 and a quick ratio of 1.1 – provide reassurance of strength in meeting short-term obligations. These figures serve as indicators of prudent fiscal management.

Market Implications and Predictions

Zscaler’s performance isn’t to be taken lightly; it’s a concoction of strategic planning, tactical decisions, and a tad bit of market intuition. Reporting a revenue that surpasses estimates while simultaneously projecting higher future earnings strengthens investor trust and invigorates the stock’s market position. The rise of Zscaler stock fits snugly with this narrative, driven by solid fiscal performance augmented by forward-thinking leadership tweaks.

The acquisition of Red Canary adds an intriguing twist to the tale. Augmenting their resources with AI-driven capabilities propels their market positioning in cybersecurity to new heights. This alignment could be crucial for their march towards digital security leadership.

Investment community updates and strategic engagements herald promising days. Institutional input will likely place Zscaler onto an elevated trajectory, with increased market visibility kicking off the story.

The rising price targets from market analysts are consistent with these performance highlights. With RBC sensing bullish prospects, all signs point towards continued ascension.

Conclusion

All eyes are on Zscaler, and rightfully so. The pillars of this recent stock surge rest on concrete fiscal results, strategic acquisitions, and amplified future guidance. As the tech realm races onward, Zscaler’s trajectory appears finely tuned, setting a standard for peers to rival. The analytics-infused drama of Zscaler surely doesn’t end here; the unfolding act promises enticing twists and momentum worth observing. As millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” This mindset is crucial as today’s question marks could very well be tomorrow’s exclamation points—a traders’ narrative ripe for engagement.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”