Still not cheap, but well off highs thanks to FUD and nothing else.
3 catalysts in front of stock now:
ER on Tuesday 9/10.
On 9/17 they will have analyst day onsite of their annual Zenith Live conf.
Likely new solution announcements coming from the Zenith Live conf.
They will have ample time to clap back at the FUD, likely in a high-road manner of a winner/leader, over the next 10 days or so as a result.
Not sure there was a need to bury this thread in tech nuances. They have giant clients - i know one personally - and if clients had real and pervasive issues w their solution you would hear about it.
Much like storage admins dont want to lose their jobs due to HCI displacing their traditional storage, or like ntwk admins may not like SDN implementations, the legacy security teams are friends of the PANW and CSCOs of the world and are threatened by the cloud-based security direction zscaler heralds.
Adapt or die in this new era of cloud and edge infrastructure being of greater strategic importance to all large orgs over traditional DCs. PANW knows this and is thrashing out.
I didnt need a crowd-sourced slack group to see this was just simple FUD.
It is interesting to see any commentary that is not flattering is dismissed as FUD. Setting aside that, saying people are supporting or buying “PANW” because they are worried about their jobs is not FUD?
One issue may not be a deciding factor when a company makes a decision to go with ZS. I think we all get that, but terming that as a “lie” or FUD, is incorrect either.
are threatened by the cloud-based security direction zscaler heralds. The higher up they are, the more experience they have with the old ways, the more these people will resist having all those skills devalued by any new tech that is disruptive. That is simple human nature.
But from a market standpoint, Wall Street finally started buying SaaS stocks a year or more after many of us here did. Now they too have some profits and are probably selling because of risk off or more likely because they want to deploy the money into something more more familiar, stocks that can be analyzed by looking backwards, stocks driven down in price by trade war talk.
Has anything changed fundamentally with these stocks? As far as ZS goes, wait a few days, the quarterly report will tell the true story
Good macro observation Chris. A contrarian might see this as a buying opportunity, while others may see it as the end of a good run.
It is impossible to decipher investing crowd mentality, but a couple of possible macro thoughts on this might be:
Risk off recession fears; recessions punish the highest valuation multiples the most, and recession chatter peaked in August after many of these issues reached 52-week highs in July.
Opportunistic profit taking; cash out the biggest winners and cycle into issues hammered in August. A lot of tech stocks and manufacturers got savaged in August, so they may look attractive for a rebound, especially if the economy is not going to falter.
Tariff war cycle; Tariff rhetoric sent a lot of importers off a cliff, and they look like bargains if the trade war cools down, so investors may be cashing out high risk winners (many of our SaaS stocks are not closely correlated to the tariff war), to scoop up beaten down tariff victims.
ZS, TWLO, SMAR, and ESTC are all flirting with the 200DMA, which may well be seen by institutional investors as key support. For chart traders this pattern may be just the right spot to enter for the next leg up.
ESTC dropped briefly below the 200DMA a couple of weeks ago going into earnings, and then quickly rebounded and bounced off the 200DMA again.
I’m not trying to read tea leaves, I’m just thinking out loud some possible scenarios, which may be nothing more than the musings of a mental aneurysm.