Zscaler Inc (ZS)

Zscaler, Inc. Stock (ZS) dropped by 5.86% from $160.89 to $151.46 in the trading on Tuesday October 3, 2023. The reasons why stock ZS down today includes:

• Macro economy: All stocks were pummeled after a stronger-than-expected job openings report was released, with 9.61 million job openings, above the 8.8 million projected for August. That appears to have increased chances for more Fed interest rate hikes.
• Bond yields: Rising long-term bond yields are damaging for cybersecurity group stocks as the bulk of their earnings power typically rests many years out into the future. So, the higher that long-term inflation projections and interest rates are today, the less those future profits are worth in today's terms.

Zscale (ZS) shares drop 6.59% as Microsoft enters cloud security space, posing a threat with its Azure capabilities. Microsoft's move encroaches on Zscaler's core offering, SSE software. Microsoft's strong foundation in cloud services and cybersecurity tech could challenge Zscaler's position.

https://www.fool.com/investing/2023/07/12/why-zscaler-stock-is-sinking-today/