Zscaler's incredible Q1 earnings justify even higher prices

Hey friends 👋,

Despite the macro risks and multidecade high-interest rates, the markets have rebounded nicely for the year to date. The AI revolution, the resilience of consumers, and the US economy have all contributed to the strong market returns.

Zscaler ($ZS), the leader in cloud cybersecurity, has benefited from the continued strong performance of the US economy, as well as the skyrocketing demand for modern cybersecurity solutions.

The company reported Q1 FY24 earnings earlier this week that exceeded analyst estimates across the board and raised its full-year outlook.

While the stock has more than doubled from 52-week lows, the virtually perfect Q1 earnings results justify even higher prices in the short, medium, and long term. Let’s take a deeper dive.

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