ZS

Zscaler Inc

TMT


Presented:01/24/2019
Price:$45.06
Cap:$5.51B
Current Price:$195.16
Cap:$29.76B

Presented

Date01/24/2019
Price$45.06
Market Cap$5.51B
Ent Value$4.06B
P/E RatioN/A
Book Value$2.07
Div Yield0%
Shares O/S122.25M
Ave Daily Vol1,599,967
Short Int15.13%

Current

Price$195.16
Market Cap$29.76B
Zscaler, Inc. provides cloud-based internet security platform. It specializes in Zscaler internet access, threat prevention, data protection, and Zscaler private access. Its services also include enterprise network security which offers integration point positioned in the data path providing secure access to the internet, cloud, and internal applications. The company was founded by Jay Chaudhry and K. Kailash in September 2007 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Zscaler Inc (ZS)

Highlights

The presenter is short shares of Zscaler (ZS) following the announcement of Amazon’s new WorkLink service. In his opinion, ZS’s Internet Access (ZIA) product is a good one, and ZPA (Zscaler Private Access) will likely continue to grow; however, it is highly likely that Amazon will win at least some new business (i.e., ZPA’s growth trajectory could be disrupted). While M&A is a risk to the thesis, as CEO Jay Chaudhry owns ~45% of the company and could be a seller for the right price, with the stock trading at a lofty 19x 2019 [consensus] revenue, the risk/reward appears to be skewed to the downside.

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Idea Discussion

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