IBD Stock Of The Day: This Cybersecurity Provider Rides Cloud To Profits

▤ Summary

Shares in the cybersecurity firm rallied through late August, then formed a cup chart pattern over four months. In the three months that ended Oct. 31, Zscaler reported earnings of a penny per share, marking its first profitable quarter on an adjusted basis. When companies use private telecom networks, web security gateways enforce rules on what workers can access and inspect data traffic for malware. Symantec ( SYMC ), which bought Blue Coat, Forcepoint and Cisco Systems ( CSCO ) have been the biggest sellers of web security gateways installed in private data centers. In August, Zscaler acquired TrustPath, a startup developing artificial intelligence-based analytical tools, to boost its threat detection capabilities.

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