Bulls Scaling Back In Zscaler

Cybersecurity software stock Zscaler is falling despite its first-quarter results and full-year guidance beating expectations. 🤔

The company’s adjusted earnings per share of $0.67 topped the expected $0.49. Revenues of $496.7 million and billings of $456.6 million also beat the $473 million and $441 million anticipated. 

However, the stock may be having trouble because CEO Jay Chaudhry said, “We are scaling our go-to-market and R&D organizations, strengthening our foundation for the long-term growth of our business.” While investing in these areas is a positive long-term, it does imply higher costs and potentially thinner margins in the near term. 🔻

Additionally, its full-year forecast of $2.52-$2.56 billion in billings stayed the same despite raising revenue and earnings guidance. Those two factors gave investors pause, especially since $ZS shares were already up nearly 75% YTD heading into this report.

The Stocktwits community remains extremely bullish on the stock, but for now, bears have the upper hand in the after-hours session, sending shares down nearly 7%.⏯️

More in   Earnings

View All

Another Day, Another Chip Rally

It’s another day, which means investors and traders were buying anything in the semiconductor space that isn’t tied down. Let’s see what you missed. 👇

First up, chip-equipment company Applied Materials soared to new all-time highs after citing “artificial intelligence” momentum during its earnings call. Adjusted earnings per share and revenues both topped expectations, while its current-quarter expectations also beat estimates. 🏭

Read It

Nvidia Delivers Bears Another Blow

With it being Nvidia day and all, let’s recap the semiconductor giant’s earnings and reaction. 👇

Before the print, we noted that Nvidia had only seen a downside surprise in earnings vs. expectations three times in the last ten years. However, with analyst estimates high and bullish sentiment roaring into the print, bears thought the contrarian view might have paid off.

Read It

Disney Snags Two Content Whales

Disney has been struggling with a number of issues ranging from streaming losses to activist investor and political pressures. However, today’s earnings report offered some hope to investors betting on a longer-term turnaround in the stock. 🕊️

The media giant reported $1.22 in adjusted earnings per share on $23.55 billion in revenues. Earnings topped estimates, while revenues were just shy. 

Read It

Investors Cut The Charter Cord

Charter Communications is back on our radars again for all the wrong reasons. The stock tumbled double-digits after the company reported a surprise loss in internet subscribers. 🫨

During the fourth quarter, the company saw total residential and small and medium-business internet customers decline by 61,000. Analysts were anticipating an increase of 6,000! Additionally, residential video customers fell more than expected, at 248,000 vs. 200,000. 📊

Read It