Down Nearly 60%, Is Zscaler Now a Long-Term Opportunity or a Value Trap in the AI Era?
Key Points
Zscaler’s 60% stock drop stems from SaaS multiple compression and a weak May earnings reaction.
A rebound likely requires proof of stronger growth, solid retention, and real AI-driven revenue potential.
- 10 stocks we like better than Zscaler ›
After a roughly 60% slide, Zscaler (NASDAQ: ZS) faces a classic execution‑versus‑valuation test amid shifting AI narratives and SaaS multiple compression. Watch the video below to see what must change before sentiment -- and the stock -- can recover.
*This video was published on Jun. 12, 2026.
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Jeff Santoro has no position in any of the stocks mentioned. Jon Quast has no position in any of the stocks mentioned. Toby Bordelon has the following options: short June 2026 $90 puts on Zscaler. The Motley Fool has positions in and recommends Zscaler. The Motley Fool has a disclosure policy.
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