Hi Bear,
Agreed, ZS shares are not cheap by any stretch of the imagination. Theyve certainly been on a tear of late. I’ve acquired all my shares between $35 and $39.
Certainly tech investors are not buying shares based on any estimate for the this year or next. I believe Bert described those as “polite fiction” lol.
We are looking at a very disruptive technology, coupled with a huge TAM, and near 70% billings growth that may lead to accelerating revenue in the coming quarters.
That said, overcoming the valuation hurdle will be a major challenge for many investors. I would certainly be looking to increase my holdings opportunistically, but I suspect these shares will always be “overvalued”. Perhaps the lock up expiration will provide a chance.
I bough shares right away after reading Bert’s excellent article and ER and CC transcript. I just felt this was one company I did not want to miss out on.
Best,
Matt