Zscaler Expands Partnership With BT Group, Strengthening Cloud Security Offerings
Portfolio Pulse from Nabaparna Bhattacharya
Zscaler, Inc. (NASDAQ:ZS) has expanded its partnership with U.K.-based BT Group Plc (OTC:BTGOF) to enhance cloud security offerings through the Zscaler AI-driven Zero Trust Exchange platform. This collaboration will also provide BT Group with security solutions for its operations, aiming to improve business agility, efficiency, resilience, and security for BT's customers. Zscaler's financial outlook includes a Q3 non-GAAP income from operations forecast of $98 million to $100 million and a net income per share of 64 to 65 cents. For fiscal year 2024, the forecast is $395 million to $400 million for non-GAAP income from operations and $2.73 to $2.77 for net income per share. ZS stock has seen over a 73% increase in the past year and is trading higher by 0.50% to $195.05 in the premarket session.
March 26, 2024 | 11:16 am
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POSITIVE IMPACT
BT Group's partnership with Zscaler to enhance its cloud security offerings could improve its competitive edge and customer satisfaction.
By partnering with Zscaler, BT Group is set to offer improved security solutions, which could attract more customers and strengthen its market position. However, the direct impact on stock price may be less immediate than for Zscaler.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Global X Cybersecurity ETF, holding Zscaler stock, might experience positive trends following Zscaler's promising financial outlook and partnership news.
Given Zscaler's role in the cybersecurity sector and its positive performance, ETFs like BUG that include ZS stock are likely to benefit from investor interest in cybersecurity growth.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Spear Alpha ETF, which includes exposure to Zscaler stock, may see positive movement due to Zscaler's strong performance and outlook.
As Zscaler performs well, ETFs like SPRX that hold ZS stock could see positive price movements, reflecting Zscaler's success and investor optimism.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Zscaler's expanded partnership with BT Group and positive financial outlook indicate potential for continued growth, with a significant stock price increase over the past year.
The expanded partnership with BT Group enhances Zscaler's market position in cloud security, potentially increasing its customer base and revenue. The positive financial outlook and past stock performance further support a bullish short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100