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Palo Alto Networks saw a 102% jump in six months, driven by SASE momentum and AI demand. Rising costs and a high valuation suggest caution.

Wall Street closed Friday in the red after a much stronger than expected August payrolls report reset the odds on a September rate hike above 50%. Nvidia reclaimed the AI throne as its market cap ballooned back toward a record, Tesla's silent Cybercab launch drew a regulator probe, and Lululemon collapsed on a broken outlook.

Zscaler shares fell 39% but fundamentals appear stronger. At about 35x forward P/E, the stock looks fairly valued.

Zscaler beat Q4 estimates with 24.9% revenue growth and wider margins. Analysts raised targets, though sales leadership transition remains a concern.

Zscaler reported Q4 revenue of $898.19 million and a full‑year total of $3.35 billion, but it remains loss‑making. The company issued slower 2027 guidance, a 3% workforce cut for AI focus, and a $1.69 billion shelf registration.

Benzinga reviewed the prospects of several popular stocks, including Palo Alto, Ciena, and Lululemon, over the past week.

Zscaler is cheaper than other cybersecurity names because FY2027 guidance signals slowing revenue and ARR growth, despite industry tailwinds.