5 Worst Cloud Stocks To Buy According to Short Sellers 

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In this article, we will look at the 5 Worst Cloud Stocks To Buy According to Short Sellers. Please visit 7 Worst Cloud Stocks To Buy According to Short Sellers if you would like to see an extended list and the methodology behind it.

5. Zscaler Inc. (NASDAQ:ZS)

Short Interest: 11.47%

On June 10, Shrenik Kothari, an analyst at Robert W. Baird, reiterated a Buy rating on Zscaler Inc. (NASDAQ:ZS) and set a price target of $230. The firm’s price target offers an additional 79% upside from here. Similarly, on June 1, Guggenheim upgraded Zscaler Inc. (NASDAQ:ZS) to Buy from Neutral and assigned a target price of $214. The positive analyst sentiment followed the company’s Q3 2026 earnings report.

5 Worst Cloud Stocks To Buy According to Short Sellers 

The quarterly report came out on May 26. Zscaler Inc. (NASDAQ:ZS) reported revenue of $850.48 million, up 25% year over year. The earnings per share came in at $1.08, which comfortably beat the Wall Street consensus of $1.01.

For Q4 2026, the company has raised its revenue guidance to between $875 million and $878 million. This translates to an EPS of $1.08 to $1.09. Guggenheim believes Zscaler is in a good position in cloud-based security, such as SASE and SSE. As a result, it could generate more revenue in the coming years.

Zscaler Inc. (NASDAQ:ZS) is a cloud-based internet security platform provider. The company is located in San Jose, California, and was founded in September 2007 by Jay Chaudhry and K. Kailash.

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