- Zscaler ( NASDAQ: ZS ) shares fell more than 9% on Tuesday as investment firm BTIG downgraded the cyber security company, hitting other stocks in the sector.
- Analyst Gray Powell noted that Zscaler ( ZS ) shares are trading at more than 13 times enterprise value-to-sales and though the company likely had a solid second-quarter, independent field checks "downticked from prior quarters and lead us to believe sales cycles will elongate over the next 6-12 months."
- Several other cyber security stocks fell as a result, including Palo Alto Networks ( NASDAQ: PANW ), Check Point Software ( NASDAQ: CHKP ) and CyberArk ( CYBR ), which lost 7.5%, 3.5% and 4% , respectively.
- Other cyber security companies, such as CrowdStrike ( NASDAQ: CRWD ), Tenable ( TENB ) and Fortinet ( FTNT ) also saw heavy losses on Tuesday, falling more than 7%, 5% and 8.5% , respectively.
- Earlier this month, Wedbush Securities added Fortinet ( FTNT ) and Checkpoint Software Technologies ( CHKP ) to the firm's best ideas list after it said it had not seen any signs of a major growth slowdown for the space .
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Zscaler downgrade hits cyber security stocks as BTIG sees signs of slowdown