Investors in the technology sector are dumping Zscaler (ZS) this morning. The cybersecurity platform supplier reported strong revenue growth in its Q4. However, the outlook is not as bright.
ZScaler grew its revenue by 30.3% Y/Y to $592.9 million. In Q1/2025, its non-GAAP net income of $0.62-$0.63 per share does not meet the consensus estimate of $0.72. The full-year guidance is also below expectations.
Patient investors should look past the weaker outlook. The firm may easily beat its target, setting up a rally next quarter.
Hong Kong-based GigaCloud Technology (GCT) may continue to squeeze short-sellers today. Yesterday, the firm announced a $46 million stock buyback program.
Its IPO raised $40 million before adding expenses. The firm invested $100 million to buy two firms – Noble House and Wondersign. It has no debt.
GCT stock peaked at $45.18 and closed last week below $20. Its CFO, David Lau, resigned on August 8, sparking panic selling in the stock.
Be wary of CleanSpark (CLSK). Investors do not want to hold firms that lose money. CleanSpark lost $236 million in the third quarter. The firm, which runs data centers for Bitcoin Mining, falls when Bitcoin (BTC-USD) prices fall.
CleanSpark invested in companies at their peak. This hurts its balance sheet and its stock.
