ZS

Cybersecurity shares, including Zscaler, surged after a wave of AI‑driven cyber threats dubbed "Black October" spurred investor interest. The rally was strongest in the afternoon session, lifting several tech stocks.

Zscaler’s stock gained focus after a Pomerantz LLP investigation into possible securities law breaches. Despite recent volatility, the share price has risen 13.1% in 30 days and 67.1% in 90 days, though the year‑long return is down 25.4%.

CNBC’s final trades highlighted Zscaler and ServiceNow, both supported by analyst targets, while Spotify jumped 11.1% after missing Q3 earnings.

Zscaler reported over $500 million in data security ARR with 30% YoY growth, driven by a large seven‑figure deal with a global asset manager. The company is integrating NVIDIA’s OpenShell to secure AI agents and high‑risk data flows.

Key TakeawaysZscaler shares rose 3% today after Freedom Broker raised its price target to $270 from $230 and kept a Buy rating. AI found two critical flaws in PHP, and that sent security stocks higher.

Zscaler closed the latest session at $237.5, up 2.67% from the previous day, while the broader market fell.

Key TakeawaysZscaler stock rose 14% in the past month, despite a 10% one-day drop when its chief revenue officer stepped down. An Investor Day that reaffirmed guidance and set a base case of more than $8 billion of ARR by fiscal 2031 brought a wave of price-target raises.

ZS' Data Security ARR tops $500 million in Q3, while its tools get featured in about 70% of Security for AI deals in Q4. Can that traction drive bigger deal wins?