Why You Should Not Give Up on Zscaler Despite Microsoft's Cybersecurity Push

Zscaler (NASDAQ: ZS) stock plunged in Wednesday trading on news that Microsoft (NASDAQ: MSFT) has added a suite of cybersecurity products to Microsoft Entra. This directly affects Zscaler, as Microsoft Entra Private Access includes a zero-trust solution.

However, in selling Zscaler stock, investors seemed to have ignored the state of the cybersecurity industry, specifically zero-trust products. Such an oversight could lead to a unique buying opportunity in Zscaler stock.

Zscaler's stock fell by about 12% following the announcement from Microsoft. Indeed, the stock is still up by almost 64% from its May low, so it may have been due for a correction. It also notably began regaining momentum the next day.

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Source Fool.com