Why Zscaler Stock Could Be Ready to Bounce After a 30% Selloff

Core Viewpoint - Zscaler Inc. has experienced a significant decline in its stock price, dropping nearly 30% in a few weeks after a strong rally earlier in the year, raising concerns about its long-term growth potential [1][5] Financial Performance - The company's recent earnings report showed solid revenue growth and better-than-expected guidance, but continued operating losses overshadowed these positive aspects [2][3] - Despite beating expectations on headline numbers, the stock's performance has been negatively impacted by market sentiment and valuation concerns [3][5] Analyst Sentiment - Many analysts still view Zscaler as a compelling long-term investment opportunity, with some projecting a potential upside of up to 60% from current levels [5] - Negative updates from analysts, including a downgrade from Bernstein, have contributed to the bearish sentiment surrounding the stock, with concerns about its growth potential being labeled as "challenged" [4] Technical Analysis - The stock has seen a significant technical breakdown, starting its decline from around $330, with little resistance until it fell below $240 [4] - Recently, the stock has shown signs of stabilizing around the $240 level, indicating potential for future movement [4]