Latest news with #RedCanary
Yahoo
a day ago
- Business
- Yahoo
Why Are Zscaler (ZS) Shares Soaring Today
Shares of cloud security platform Zscaler (NASDAQ:ZS) jumped 5.1% in the afternoon session after the stock's momentum strengthened following the strong first quarter 2025 results reported the previous week, which exceeded Wall Street's sales, operating profits, and earnings (EPS) estimates. In response, Wall Street analysts maintained bullish ratings, with several raising their price targets, reflecting increased confidence in the company's growth potential. UBS raised its price target from $260 to $315 while reiterating a Buy rating, suggesting the firm saw significant upside potential. Canaccord Genuity analyst Kingsley Crane also raised the stock's price target from $230 to $305 and maintained a Buy rating. He noted that Zscaler outperformed consensus expectations across all key metrics in the quarter. In addition, the company's acquisition of Red Canary was highlighted as an important move into the managed detection and response (MDR) market, a rapidly growing segment. The analyst emphasized that the deal could improve Zscaler's security operations center (SOC) capabilities. Is now the time to buy Zscaler? Access our full analysis report here, it's free. Zscaler's shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 3 days ago when the stock gained 8.4% on the news that the company reported impressive first-quarter 2025 results, with billings, revenue, EPS, and adjusted operating income outperforming Wall Street's estimates. Management clarified there were no changes in the macro environment, which tempered growing concerns cited by peers that reported earlier. Notably, broader market trends around AI and cybersecurity, highlighted by a reported 3,000% increase in enterprise AI usage, suggested an expansion in the addressable market. This is expected to be augmented by recent acquisitions, including Red Canary and Avalor, for data security management. Red Canary reported $140M ARR earlier in the year, suggesting it will be a significant contributor to growth. Looking ahead, Zscaler reported optimistic full-year EPS guidance, which exceeded analysts' expectations. Overall, we think this was still a solid quarter with some key areas of upside. Zscaler is up 59.4% since the beginning of the year, and at $289.50 per share, has set a new 52-week high. Investors who bought $1,000 worth of Zscaler's shares 5 years ago would now be looking at an investment worth $2,727. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Why Are Zscaler (ZS) Shares Soaring Today
Shares of cloud security platform Zscaler (NASDAQ:ZS) jumped 5.1% in the afternoon session after the stock's momentum strengthened following the strong first quarter 2025 results reported the previous week, which exceeded Wall Street's sales, operating profits, and earnings (EPS) estimates. In response, Wall Street analysts maintained bullish ratings, with several raising their price targets, reflecting increased confidence in the company's growth potential. UBS raised its price target from $260 to $315 while reiterating a Buy rating, suggesting the firm saw significant upside potential. Canaccord Genuity analyst Kingsley Crane also raised the stock's price target from $230 to $305 and maintained a Buy rating. He noted that Zscaler outperformed consensus expectations across all key metrics in the quarter. In addition, the company's acquisition of Red Canary was highlighted as an important move into the managed detection and response (MDR) market, a rapidly growing segment. The analyst emphasized that the deal could improve Zscaler's security operations center (SOC) capabilities. Is now the time to buy Zscaler? Access our full analysis report here, it's free. Zscaler's shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 3 days ago when the stock gained 8.4% on the news that the company reported impressive first-quarter 2025 results, with billings, revenue, EPS, and adjusted operating income outperforming Wall Street's estimates. Management clarified there were no changes in the macro environment, which tempered growing concerns cited by peers that reported earlier. Notably, broader market trends around AI and cybersecurity, highlighted by a reported 3,000% increase in enterprise AI usage, suggested an expansion in the addressable market. This is expected to be augmented by recent acquisitions, including Red Canary and Avalor, for data security management. Red Canary reported $140M ARR earlier in the year, suggesting it will be a significant contributor to growth. Looking ahead, Zscaler reported optimistic full-year EPS guidance, which exceeded analysts' expectations. Overall, we think this was still a solid quarter with some key areas of upside. Zscaler is up 59.4% since the beginning of the year, and at $289.50 per share, has set a new 52-week high. Investors who bought $1,000 worth of Zscaler's shares 5 years ago would now be looking at an investment worth $2,727. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Zscaler (ZS) Stock Trades Up, Here Is Why
Shares of cloud security platform Zscaler (NASDAQ:ZS) jumped 8.4% in the morning session after the company reported impressive first-quarter 2025 results, with billings, revenue, EPS, and adjusted operating income outperforming Wall Street's estimates. Management clarified there were no changes in the macro environment, which tempered growing concerns cited by peers that reported earlier. Notably, broader market trends around AI and cybersecurity, highlighted by a reported 3,000% increase in enterprise AI usage, suggested an expansion in the addressable market. This is expected to be augmented by recent acquisitions, including Red Canary and Avalor, for data security management. Red Canary reported $140M ARR (annual recurring revenue) earlier in the year, suggesting it will be a significant contributor to growth. Looking ahead, Zscaler reported optimistic full-year EPS guidance, which exceeded analysts' expectations. Overall, we think this was still a solid quarter with some key areas of upside. Is now the time to buy Zscaler? Access our full analysis report here, it's free. Zscaler's shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 9 months ago when the stock dropped 17.8% on the news that the company reported second-quarter earnings. Its billings guidance for next year was slightly below expectations, and furthermore, suggested ean acceleration in growth throughout the year. Management specifically detailed "year-over-year billings growth of approximately 13% in the first half, accelerating to 23% growth in the second half". This made the market quite uncomfortable. On the other hand, Zscaler beat analysts' billings, revenue, and operating income expectations this quarter. Zooming out, we think this was a solid quarter featuring some areas of strength, but the outlook seemed to be weighing on shares. Zscaler is up 49.5% since the beginning of the year, and at $271.65 per share, has set a new 52-week high. Investors who bought $1,000 worth of Zscaler's shares 5 years ago would now be looking at an investment worth $2,470. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Time of India
6 days ago
- Business
- Time of India
Zscaler to acquire MDR specialist Red Canary to bolster zero-trust capabilities
NEW DELHI: Cloud security solutions provider Zscaler has signed an agreement to acquire managed detection and response (MDR) specialist, Red Canary , to bolster in-house zero-trust solutions. The deal, whose financial terms were not disclosed, is expected to close in August 2025. Founded in 2014, the privately-held startup has raised $135 million in multiple rounds from investors including Summit Partners, Noro-Moseley Partners and Kyrus Tech, according to data from market intelligence firm Tracxn. Its competitors include Carbon Black, Cyberhaven and Absolute Software. According to its website, Red Canary works with nearly 1,000 organisations, and provides MDR across its customers' cloud workloads, identities, SaaS applications, networks, and endpoints. 'With our innovative AI-powered risk management services like Risk360 and the acquired data fabric technology from Avalor, we are disrupting legacy security operations just like we did with our Zero Trust Exchange platform,' said Jay Chaudhry, CEO, chairman, and founder of Zscaler. 'By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations,' Chaudhry added. The San Jose, US-headquartered cybersecurity giant offers solutions to nearly 45% of the Fortune 500 companies . The companies said the integration of their solutions will enable security teams to detect, triage, investigate, and respond to threats with better speed and efficiency, helping organisations precisely tackle modern security challenges. 'Zscaler's global scale and reach provide the resources and granular data needed to fuel advanced AI, threat intelligence , and detection engineering, giving us a broader view of adversary behavior while enabling faster innovation across the board,' said Brian Beyer, CEO of Red Canary. Forrester analysts, however, expressed apprehensions about the foundation of the deal. 'While MDR is taking a turn towards more proactive capabilities and zero-trust can reduce the impact of breaches, zero-trust and MDR do not amplify one another. Therefore, bundling SSE with MDR is not a natural or compelling consumption model,' the analysts said in a blog article, analysing the deal. According to Forrester, the managed network security and the managed SIEM segments have failed to create synergies beyond bundling via a single catalog of services. 'In fact, the challenges created by this disconnect helped create MDR as a standalone market,' they said.
Yahoo
6 days ago
- Business
- Yahoo
Zscaler, Inc. (ZS) Expands AI Security Capabilities by Acquiring Red Canary Deal
Zscaler, Inc. (NASDAQ:ZS) announced on May 27, 2025, its definitive agreement to acquire Red Canary, a leading provider of Managed Detection and Response (MDR) solutions. The move aims at strengthening the company's AI-powered security by incorporating Red Canary's automation-led threat detection capabilities into its Zero Trust Exchange platform. An employee standing in front of a large data center, looking toward the future of cloud security. Through the acquisition, Zscaler, Inc. (NASDAQ:ZS) aims to merge its cloud-scale data fabric and global threat intelligence with Red Canary's decade-long expertise in streamlining threat investigation. Jay Chaudhry, CEO of Zscaler, Inc. (NASDAQ:ZS), made the following comment: 'The proposed acquisition of Red Canary is a natural expansion of our capabilities into managed detection and response and threat intelligence to accelerate our vision of AI-powered SOC of the future. By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations.' The company has also recently invested in tools like Risk360 and Exposure Management, signaling Zscaler, Inc. (NASDAQ:ZS)'s intent to shift toward a fully integrated and intelligent Security Operations Center. Investor sentiment remains strong for Zscaler, Inc. (NASDAQ:ZS). Shortly after the deal was revealed, Cantor Fitzgerald raised its price target from $250 to $275 while maintaining an Overweight rating. Analysts from Stephens & Co. also reiterated an Overweight stance, stressing their confidence in the company's growing role in enterprise cybersecurity. While we acknowledge the potential of ZS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZS and that has 100x upside potential, check out our report about the READ NEXT: 10 Unstoppable Dividend Stocks to Buy Now and 11 Oversold Global Stocks to Buy According to Hedge Funds Disclosure: None.
