|Bid||51.25 x 1100|
|Ask||51.45 x 1000|
|Day's Range||50.36 - 52.35|
|52 Week Range||30.72 - 89.54|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||67.82|
(Bloomberg Opinion) -- Many of us have been fixated on WeWork’s struggle to go public and the disastrous post-IPO stock performance of high-profile startups Uber Technologies Inc. and Lyft Inc. But as has often been true in the last few years, the tale is different for the unglamorous tech companies that are running circles around their cool peers.The latest example is Datadog Inc., which helps companies monitor the health of their apps and computing infrastructure; it sold its first batch of public stock late Wednesday. If you fell asleep reading the description, let me wake you up by saying that the company’s most recent pre-IPO investors(1) have a nearly 1,100% gain on their shares in less than four years,(2)according to figures from EquityZen, a marketplace for private stock sales. The earliest Datadog stock buyers from 2011 have a nearly 50,000% gain.In a non-systematic look at more than a dozen other tech companies that have gone public in the past couple of years, the stock gain for Datadog’s pre-IPO investors is at or near the top of the leader board. Repeatedly, the less-buzzy startups like Datadog that sell cloud-subscription software to businesses have been the ones that deliver the goods for early backers. There have been exceptions, but companies like Zoom Video Communications Inc. and Slack Technologies Inc. — the coolest of the Zzzz crowd — have tended to produce strong returns for pre-IPO investors, and their public shares have typically done well, too.Investors, both public and private, love these software-as-a-service companies. Generally their technology is better than anything that came before — if there was an old-guard technology with similar functions — and once businesses use the software and stitch it together with email, calendars, information databases and other corporate systems, it can be tough to ditch. If they’re managed properly, these business software companies can grow fast and predictably.Among the tech companies that have gone public on U.S. stock exchanges since the beginning of 2018, nine of the top 10 by stock gains from their IPO price are software companies that sell to businesses, according to data compiled by Bloomberg. (No. 1 is Zscaler Inc., whose share price has more than tripled since its March 2018 IPO, despite a recent drop.)What are the lessons here? Well, not surprisingly, it may be that the consumer-oriented tech companies with lots of attention as startups may be great companies but not necessarily great investments if the hype leads to overvaluation. That’s particularly true — as in the cases of Uber, Lyft and WeWork — when public company investors are far more dubious than private investors about companies with unproven business models and unsteady financial metrics. The other lesson may be that you’re in luck if you founded a company in a sector like business software that, at least for now, is the apple of investors’ eyes. I have my doubts about how long these software-as-a-service companies can stay viable. When there is an economic downturn and companies take a hard look at what they’re spending on technology, there are going to be software bills they can live without. That swings the advantage to the big software supermarkets like Oracle, Microsoft and Amazon, which can offer companies discounts on a range of technologies. Some young business software companies are also spending big to grow in a way that may not be sustainable, and their corners of the market may not be as big as optimists expect. These young cloud software companies are also priced for growth to the point where they are vulnerable to any hiccup in customer acquisition numbers or revenue gains. That has happened recently, when companies like Zscaler, Alteryx Inc., PagerDuty Inc., CrowdStrike Holdings Inc. and New Relic Inc. reported wobbly financial results, changes in management or were just infected by worries from other companies in their sector. Still, Datadog shows the benefit of being the right kind of business at the right time. Bloomberg News reported Wednesday that Cisco Systems Inc. approached Datadog recently with a takeover offer significantly higher than the $7 billion valuation it had been shooting for in an IPO. (As of Thursday’s early stock market trades, Datadog is valued at about $11 billion, excluding the value of shares held by employees and others.)Datadog was apparently confident enough in its prospects to turn that down and opt to go public. The uncool companies truly are that cool.A version of this column originally appeared in Bloomberg’s Fully Charged technology newsletter. You can sign up here.(1) Those investors include Iconiq Capital, the investment fund that has managed money forMark Zuckerberg of Facebook and other affluent people and institutions in Silicon Valley and beyond. Other stock buyers included Index Ventures, OpenView Ventures, Amplify Partners and Contour Ventures, Datadog announced in early 2016.(2) I will say that it's unusual for tech startups these days to go public without selling stock or doing other cash collections in the four years before an IPO. Some startups can't go four weeks without needing fresh cash.To contact the author of this story: Shira Ovide at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
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Shares of San Jose-based Zscaler Inc. rose about 6 percent Tuesday after it said that its cloud-security platform will use endpoint protection technology from Sunnyvale-based Crowdstrike Holdings Inc., whose stock rose more 4 percent.
Interested in IPO stocks like Uber, Beyond Meat, Zscaler and Peloton? Learn lessons from Facebook, Alibaba and Snap before investing in IPO stocks.
Zscaler Inc. shares rally Tuesday following a blitz of announcements that includes a partnership with cybersecurity company Crowdstrike Holdings Inc.
The start of a major uptrend is hard to spot if you learn how to trade growth stocks and rely solely on news headlines. Look for this specific chart action.
Zscaler, Inc., the leader in cloud security, today announced the Zscaler™ platform is now distributed across over 150 data centers, with the company’s latest data center opening in Val-de-Reuil, Normandy, France. It is now distributed across more than 150 data centers on six continents, which enables users to access the internet and cloud services securely from any device, any location, and over any network. “The physical footprint and end-to-end control of the network, infrastructure, and code base of our global cloud is crucial for ensuring availability, security, and performance at scale for customers transforming to the cloud,” said Amit Sinha, Zscaler CTO and President of R&D, Operations & Customer Service.
Zscaler, Inc., the leader in cloud security, today announced Zscaler B2B, a new innovation that solves a long-standing problem businesses face when exposing their applications to their customers, suppliers and manufacturers. Zscaler™ B2B is a unique solution that reduces the attack surface introduced by customer-facing applications that are exposed on the internet. Built with the fundamentals of a service-initiated zero trust network access (ZTNA) architecture, Zscaler B2B enables authorized customers to view applications, based on business policy, without ever exposing the apps to the Internet where they are often attacked.
Zscaler, Inc., (ZS), the leader in cloud security, today announced a partnership with CrowdStrike, a leader in cloud-delivered endpoint protection. CrowdStrike’s AI-powered Threat Graph will integrate with Zscaler’s cloud security platform to provide customers with real-time threat detection and automated policy enforcement that improves security across their networks and endpoints. “In a cloud and mobile-first world, companies must contend with a growing number of devices within the organization, as well as employees’ desire for fast and simple access to internal and external applications, all of which puts pressure on IT departments to provide secure employee access,” said Punit Minocha, SVP of Business Development, Zscaler.
Cloud-based cybersecurity companies ZScaler and CrowdStrike both jump after they announce a partnership that will provide businesses with real-time security protection across their computer networks.
Leader in Cloud Security Provides On-Demand Access to Industry’s Top Cloud Summit
The Dow Jones rose toward new highs. Apple broke out after unveiling new iPhones and Apple TV+ pricing, but shares faded. Zscaler dived on guidance. Oracle co-CEO Mark Hurd will take leave.
When Wall Street gets in a mood, it's time to watch out. It's also true the market can forgive and forget just as quickly. As much, when it comes to deeply oversold and out-of-favor growth stocks Pinterest (NYSE:PINS), Zscaler (NASDAQ:ZS) and CrowdStrike (NASDAQ:CRWD), it's time to put these names on your radar as stocks to buy today.While the averages have clawed their way back and into favor with index-focused investors, many risk assets have been left behind. Large-cap tech giants Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN) are two prolific performers and household names that have largely failed to participate in the market's current rally.Sure, there's company-specific or macro reasons for the treason-like price behavior. There always is. More important, most often those concerns quietly and sometimes quickly disappear -- and are then replaced by as easily defendable supports for making yesterday's whipping boy today's hottest new toy on Wall Street. So, NFLX and AMZN are stocks to buy?InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Discount Retail Stocks to Buy for a Recession Personally, I'm not here to defend NFLX or AMZN shares and their varied levels of investor loathing. I'd rather focus on smaller, up-and-coming companies with big-time growth prospects and oversold price charts. These are stocks to buy if you can get past today's bearish narratives. Growth Stocks to Buy: Pinterest (PINS)Pinterest stock is the first of our growth stocks to buy. The wildly popular, web-based visual discovery platform rocketed higher by nearly 19% in early August after smoking earnings forecasts. The bullish price action set the stage for a market-leading, cup-with-handle breakout to fresh all-time-highs. But the classically strong-looking situation wasn't meant to be.With nary a price driver to account for the complete unwinding of shares, Wall Street and its often fickle -- and sometimes perverse -- behavior took the technically-constructive pattern and sent shares into a well-oversold situation that's tested trend-line support this week.I recommend that Pinterest is a stock to buy today. Investors should size the position for a 10% stop-loss to minimize exposure and exit if nearby support fails. Zscaler (ZS)ZS stock is the second of our growth stocks to buy. The cybersecurity upstart dropped the ball with reduced guidance for its fiscal year amid worries that Palo Alto Networks (NYSE:PANW) is encroaching on its growth. Oh, the worries.I'd be quick to point out it's far from unusual for one quarter's jeers to be replaced by investor cheer the very next reporting period. And ZS stock is no stranger to this phenomenon, either. Chalk up the reversal in price action to sandbagging, better-than-feared results or any number of reasons -- Wall Street has lots of reasons to forgive and forget.One early sign that investors will eventually reconnect with ZS stock is the price chart. Shares of Zscaler are oversold while filling a bullish earnings gap from two quarters ago. ZS stock is testing its lifetime cycle 62% Fibonacci support level. * 10 Battered Tech Stocks to Buy Now My recommendation for this stock to buy is to purchase shares if a confirmed weekly chart bottoming candlestick pattern emerges in the next several sessions while continuing to hold ZS stock's fallout low of $46.04. CrowdStrike (CRWD)CRWD stock is the last of our growth stocks to buy. CrowdStrike is another cybersecurity play and another casualty of earnings. Unlike ZS stock, CRWD appears to have suffered the curse of overly high expectations and valuation concerns as this growth stock topped estimates and boosted both its earnings and sales guidance. Talk of competition from VMware (NYSE:VMW) also helped shares spiral lower.Of the three, CRWD stock is the one I'd be most wary of buying. Shares ripped straight through a prior bullish earnings gap and 62% retracement level. CrowdStrike is now testing the 76% level for support. But if this week's low fails, shares are likely to challenge the June opening low of $56.My recommendation for this stock to buy is to purchase shares above $72, as long as CRWD can hold $65. Both the entry and exit blend the chart with pragmatism in keeping risk contained to roughly 10% -- and keeping investors safely on the sidelines for a more valuable stock to buy if a challenge of the prior low and double bottom pattern are to become a future reality.Investment accounts under Christopher Tyler's management currently own positions in Pinterest (PINS) and its derivatives, but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 3 Oversold Growth Stocks to Buy Today appeared first on InvestorPlace.
Today we will run through one way of estimating the intrinsic value of Zscaler, Inc. (NASDAQ:ZS) by taking the...
It's been an eventful week for tech stocks, and the software sector in particular has made headlines. So far, we've seen one of the biggest short-term moves out of momentum and growth shares and into value names since at least 2011. Stocks like Alteryx (NYSE:AYX) -- the cream of the crop for software as a service names -- are down 20% in a few days. Meanwhile, left for dead companies in the old economy, like retail and energy firms, are suddenly surging.Source: Bjorn Bakstad / Shutterstock.com So far, Salesforce (NYSE:CRM) has largely avoided getting mauled along with its sector. Salesforce's stock price is only down about 8% from its 52-week high, which isn't bad at all given the carnage in many of the other software names. But will CRM stock continue to hold its ground in the coming days and weeks? Can Salesforce Stock Support its Valuation?Over the past few years, it hasn't been difficult to own software companies. If they are growing nicely and generate decent free cash flow, you can generally hold the stock and the share price will rise over time. Sure, there have been bumps along the way, but generally, any dip has been a great buying opportunity.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWe may be entering a new paradigm, however. The drop in software stocks over the past week is one of the worst in years and it comes in isolation. Broader tech stocks including the FAANGs -- Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), and Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google -- aren't seeing similar declines. Even though Alphabet is under fire from 50 state attorneys general, has avoided a significant selloff. Yet SaaS stocks are getting annihilated. * 10 Battered Tech Stocks to Buy Now This leads us to ask if Salesforce stock will fall victim to this trend as well. CRM stock is currently trading for 129 times trailing earnings and 50 times forward earnings. That's extremely expensive by any measure. With the company's 22% growth rate, that makes for a PEG ratio well above 2, which many analysts hold as the cutoff for a fast-growing tech company.Of course, more than a few SaaS companies don't make accounting profits at all, so Salesforce at least has some real earnings to fall back on. On a price/sales basis, CRM stock is selling for 9x at the moment. That's expensive, but it's under the 10x threshold that makes a tech company nosebleed expensive. The 41x price-to-free cash flow metric is also steep, however, particularly given that cash flow growth underwhelmed last quarter.CRM stock would have to drop a lot in price to become a reasonable buy on a valuation basis. Has Salesforce's Investment Profile Changed?Within the SaaS space, CRM stock was as close to a buy-and-hold-forever pick as you could get. Salesforce has incredible market share in its core CRM business. Once it signs on a customer, it almost never loses them. The time and cost to switch to a different service provider is simply too great. As a result, Salesforce has been able to spend heavily on customer acquisition knowing that most of its new clients will stay on for many years, or decades, producing high-margin predictable cash flows.As such, you could easily model Salesforce's value by looking at how fast revenues were growing and watching their margins. It was a fairly easy business to predict so investors got comfortable holding it for the long run.This may be changing, however. Salesforce has now started to acquire other software companies left and right as it broadens its product offerings. That's not necessarily a bad thing by any means. But it adds more risk to the profile, as Salesforce could see some of its investments in less core offerings falter and ding the overall valuation.These aren't small plays either. Salesforce has purchased MuleSoft for $6.5 billion, ClickSoftware recently for more than $1.3 billion, and -- most importantly -- Tableau for more than $15 billion. As Salesforce has issued a lot of stock for these deals, it risks significant dilution if these don't fit in with the core CRM business as much as management hopes. These buys could end up looking great. In the short run, however, with investors questioning software stock valuations, CRM stock looks riskier as investors wait and see if all this mergers and acquisition activity ends up succeeding or not. My Verdict on CRM StockI just don't see the case for getting involved in CRM stock, yet. It seems there are two ways that things could shake out in the short run. The sector could continue to slide, dragging down Salesforce's stock price with it. Or the SaaS stocks could stabilize, offering much bigger short-term gains for its peers that have fallen 15%-25% in recent days. If you want to buy the dip, there are more attractive names right now than CRM stock.With Zscaler (NASDAQ:ZS) down 20% following its earnings report earlier this week, that's another red flag coming out of the SaaS sector. Salesforce, as one of the longest running SaaS companies, has developed a sterling reputation within the industry. But who knows if that will be tarnished as it integrates all these acquisitions. If Salesforce shows any weakness in its numbers, CRM stock could easily trade down 20% in coming weeks like so many of its peers.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Salesforce Stock Is at Risk as Other Software Stocks Tank appeared first on InvestorPlace.
After Zscaler reported positive Q4 results on Tuesday, its stock dropped 20.29% after hours. Today, it fell 18.83% due to lower earnings guidance for Q1.
NEW YORK, NY / ACCESSWIRE / September 11, 2019 / Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating potential securities fraud claims on behalf of shareholders of ...
Zscaler Inc.’s stock suffered its worst day since going public a year-and-a-half ago after the cloud-based cybersecurity company’s forecast came into question and half the analysts covering the stock cut target prices.
Morgan Stanley analyst Melissa Franchi maintained an Underweight rating on Zscaler and lowered the price target from $52 to $47. Bank of America Merrill Lynch analyst Tal Liani reiterated a Neutral rating and reduced the price target from $77 to $65. Credit Suisse analyst Brad Zelnick maintained an Outperform rating but lowered the price target from $78 to $70.
This most-searched list is a feature included in Benzinga Pro's Newsfeed tool. It highlights stocks frequently searched by Benzinga Pro users on the platform. Francescas Holdings (NASDAQ: FRAN ) shares ...