Shares of Zscaler (ZS) spent much of this year stuck in the same storm battering the broader software sector. Investors feared rapid advances in artificial intelligence (AI) could encourage companies to build more tools in-house instead of paying for services from firms such as Zscaler.
The anxiety already kept pressure on the stock before the latest selloff opened the floodgates. On Wednesday, May 27, Zscaler’s shares nosedived more than 31.5% for one of the worst single day declines in the company’s history after guidance failed to impress Wall Street.
