Why Zscaler Stock Was Down This Week
Week to date, shares of Zscaler (NASDAQ: ZS) were down 18% as of 11:15 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence. The stock fell sharply after company President Amit Sinha announced he would resign on Oct. 21 to take a CEO position at a privately held technology business.
Shares have plunged 57% year to date -- a reflection of how badly software-as-a-service stocks have fallen out of favor on Wall Street. But given Zscaler posted 61% revenue growth last quarter, the pullback might be a good buying opportunity.
The stock's plunge following the news is not surprising, since the departure of a high-level executive at any company is usually unwelcome news. But the market overreacted on this one. Sinha is not leaving for a competitor, according to Guggenheim analyst John DiFucci, who confirmed that information with the company. Sinha appears to be leaving for a better job -- period.
Source Fool.com
