Zscaler (ZS) Acquires ZeroTrust

Zscaler Inc. (NASDAQ:ZS) is one of the 11 Best Beaten Down Growth Stocks to Buy Now.

On February 5, Zscaler announced that it had acquired SquareX. This acquisition would enable the company to expand its ZeroTrust capabilities to the browser by leveraging SquareX’s pioneering Browser Detection and Response (BDR) solution. The exact terms of this transaction have not yet been disclosed to the public, with more details likely to come during the company’s Q2-2026 earnings call on February 26.

Zscaler (ZS) acquires ZeroTrust

As for the potential impact of this deal, Vivek Ramachandran, founder of SquareX, said:

By integrating with Zscaler, we will enable organizations to secure SaaS and private applications across any device – managed or BYOD – without compromising productivity. This approach allows IT leaders to replace expensive, insecure legacy access tools with precise Zero Trust policies that protect data and AI interactions based on an organization’s specific risk profile.

A day after this deal was announced, Zscaler’s stock fell slightly by 1.2% to $167.33 (from $169.39). Year-to-date, the stock has fallen 18.9% as investor sentiment on software companies sinks due to the “AI is the death of software” narrative. Despite this fall, analysts still have a bullish view on Zscaler. This conviction is evident in the median analyst target price of $320.00, according to CNN data, implying a potential upside of 91.24%.

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

While we acknowledge the risk and potential of Zscaler Inc. (NASDAQ:ZS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZS and that has 10,000% 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.