Better Cloud Stock: Zscaler vs. DigitalOcean
(NASDAQ: ZS) and DigitalOcean (NYSE: DOCN) represent two different ways to invest in the booming cloud software market. Zscaler is a cybersecurity company that provides "zero trust" services that treat everyone as a potential threat. Instead of installing its tools through on-site appliances like most traditional cybersecurity companies, Zscaler offers them as subscription-based cloud services -- which are cheaper and easier to scale as a company grows. DigitalOcean provides cloud infrastructure services to small businesses. Unlike larger cloud platform providers like Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT), DigitalOcean offers up smaller "droplets" of servers at lower prices.
Both stocks soared to their all-time highs in November 2021. But today, Zscaler and DigitalOcean trade nearly 60% and 80% below those record levels. The bulls retreated as the macro headwinds throttled their revenue growth, and rising interest rates popped their bubbly valuations. Should investors take a chance on either of these out-of-favor growth stocks right now?
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Source Fool.com
Zscaler Inc Stock
With 67 Buy predictions and 1 Sell predictions Zscaler Inc is one of the favorites of our community.
As a result the target price of 205 € shows a positive potential of 22.53% compared to the current price of 167.3 € for Zscaler Inc.
