Why Zscaler, Palo Alto Networks, and PG&E Slumped Today
Stocks climbed on Monday, extending Friday's gains as U.S. treasury yields rebounded from historic lows and helped ease investors' concerns over an impending recession. Major indexes rallied, with the Dow and the S&P 500 gaining around 1% and 1.2%, respectively, but they still haven't fully recovered from their brutal sell-off early last week.
However, the rising tide didn't lift all boats. Several individual stocks fell sharply, including Zscaler (NASDAQ: ZS), Palo Alto Networks (NYSE: PANW), and PG&E (NYSE: PCG).
Shares of Zscaler fell 11.3% after OTR Global downgraded the cloud-based cybersecurity specialist to "negative" from "mixed." To justify its relative bearishness, the analyst cited channel checks with Zscaler partners that showed concerns over increasing competition and discouraging sales trends. Regarding the latter, OTR elaborated that some Zscaler partners fell short of their sales goals in their most recent quarter, while others expect sales growth in the current quarter to lag that of the broader cybersecurity industry.
Source Fool.com
