Why Zscaler, Inc. (ZS) Surged On Friday

We recently published a list of Investors Rushed Into These 10 Stocks Today. In this article, we are going to take a look at where Zscaler, Inc. (NASDAQ:ZS) stands against other Friday’s best-performing.

Zscaler saw its share prices increase by 9.79 percent on Friday to close at $275.70 apiece as investors cheered the appointment of its new chief finance officer (CFO), while digesting its mixed earnings performance.

In a statement, Zscaler, Inc. (NASDAQ:ZS) welcomed Kevin Rubin as its new CFO, who is set to play a critical role in scaling the company’s global finance organization. He will replace Remo Canessa, who stepped down for retirement last year.

An employee standing in front of a large data center, looking toward the future of cloud security.

Canessa will remain with Zscaler until the end of the fiscal year 2025 in an advisory capacity to support the transition.

Rubin’s appointment followed Zscaler, Inc.’s (NASDAQ:ZS) mixed earnings results for the third quarter of fiscal year 2025.

According to the company, it swung to a net loss of $4.1 million from a $19.1-million net income in the same quarter last year. Revenues, however, increased by 23 percent year-on-year to $678 million from $553 million.

For the nine-month period, Zscaler, Inc. (NASDAQ:ZS) remained at a net loss of $23.9 million, albeit 44 percent lower than the $42.8 million net loss posted in the same period a year earlier. Revenues in the past three quarters grew by 24 percent to $1.95 billion from $1.57 billion.

Overall, ZS ranks 3rd on our list of Friday’s best-performing. While we acknowledge the potential of ZS, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZS and that has 10,000x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.