One of my best-performing plays in the satellite portfolio recently. People always ask why it ran up so fast and whether it's too late. Here's my take:
🛡️ Why it popped (and why Zscaler #zscaler
$ZS (-1,17%)
:
- Oversold on noise: The market panicked over temporary slowdown fears and completely ignored their absolute dominance as the pioneer in Zero Trust cloud security.
- Non-discretionary spend: With offensive AI running wild, cybersecurity isn't a "nice-to-have" budget item anymore. It's keep-the-lights-on mandatory.
- Solid execution: They actually delivered—accelerating margins, turning solid free cash flow, and beating billings expectations consistently.
🔮 Why I'm not selling:
- Land-and-expand: They're successfully cross-selling new data protection and SaaS security modules to big enterprise clients.
- Sticky revenue: High net retention rates (NDR) mean once a company is in the ecosystem, they rarely leave.
- Growing attack surface: Multi-cloud and remote work aren't going anywhere, which means the attack surface just keeps expanding.
Thesis is fully intact. Still holding long-term. 📈$ZS (-1,17%)
