OpenAI Astra Cybersecurity Reveal: Skip Legacy Cybersecurity, Buy Zscaler

APAC Research 1.41K Followers Follow Summary Zscaler is rated a buy due to its leading zero-trust cybersecurity solutions, which are well-positioned to counter escalating AI-driven threats. Despite recent stock underperformance and slowing growth (~25% YoY), I expect ZS to benefit from a surge in cybersecurity spending as AI risks intensify. ZS’s recent earnings beat expectations, and while forward guidance is conservative (16.6%-17.5% growth), I believe results will surpass these targets. I remain cautious on human-centric, service-focused firms like NCC Group, as AI may erode their business models and reduce billable hours. Getty Images Thesis I believe we will see a serious ramp-up in cybersecurity spending in the coming months owing to AI threats, providing tailwinds for cybersecurity companies. That said, in the long run, AI will create both cybersecurity winners and losers, and for now, I am shying away This article was written by APAC Research 1.41K Followers Follow Markets rise and fall, booms come and go, and the world keeps ticking. Ultimately, I believe observing megatrends, as difficult as they can be to spot, let alone fully comprehend, can yield insights into the advance of human society, which in turn could pave the way for many useful investment insights. As society and technologies evolve, companies and other stakeholders will seize advantages. Figuring out which companies will take the best advantage of any given opportunities is not easy. I am especially interested in macrotrends, futurism, and increasingly, emerging technologies. However, as far as investing is concerned, it’s crucial to pay attention to the fundamentals, quality of leadership, product pipeline, and all the other details. In recent years, I have focused on marketing and business strategy, primarily for medium-sized companies and startups. I have worked in international development, including overseas for a foreign Prime Minister’s office, as well as non-profit work in the United States. Among other tasks, I evaluated startups and emerging industries/technologies. I have also moonlighted as a technology and economic news journalist. Now I’m looking to tie everything together. While my personal interests will always keep megatrends and technological developments in mind, I do believe fundamentals and technicals are vital to uncovering opportunities. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ZS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.