ZScaler plummeted last week after the company issued 2020 earnings guidance well below Wall Street's expectations. The company's fourth-quarter earnings handily beat Street expectations and its revenue guidance is in line with expectations, but it forecast earnings of only 12-15 cents per share versus Street expectations of 19 cents per share. In part that's because of the high cost of sales and marketing, which account for a whopping 57% of revenue!
The stock has significant support around $49-50, and on Tuesday it announced a product collaboration with Crowdstrike. Like ZScaler, Crowdstrike also took a hit recently due to earnings guidance below expectations. The collaboration could serve as a catalyst for both companies, although it probably won't translate into revenue anytime soon. Analysts consider ZScaler's evaluation to still be pretty high, with a price-to-sales ratio of 16.
A break of my red trend line would be bullish for the stock, but I'd like to see a further pullback to the stronger volume support at 39.62 before entry.
The stock has significant support around $49-50, and on Tuesday it announced a product collaboration with Crowdstrike. Like ZScaler, Crowdstrike also took a hit recently due to earnings guidance below expectations. The collaboration could serve as a catalyst for both companies, although it probably won't translate into revenue anytime soon. Analysts consider ZScaler's evaluation to still be pretty high, with a price-to-sales ratio of 16.
A break of my red trend line would be bullish for the stock, but I'd like to see a further pullback to the stronger volume support at 39.62 before entry.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.