{
  "id": 5922941,
  "title": "There Are A Lot Of Zscaler Inc. (NASDAQ:ZS) Shorts, Says Jim Cramer",
  "url": "https://urgent.news/2026/09/04/there-are-a-lot-of-zscaler-inc-nasdaq-zs-shorts-says-jim-cramer",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-04T22:50:09.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/lot-zscaler-inc-nasdaq-zs-225009241.html"
  },
  "original_language": "en",
  "account": "Zscaler Inc. (NASDAQ:ZS), a cybersecurity firm, reported a 25% annual revenue growth and a 33% increase in non-GAAP earnings for its fiscal fourth quarter earnings. Analysts estimated revenue at $807 million and non-GAAP earnings per share at $1.09. In response to muted share prices following the earnings release, CNBC's Jim Cramer mentioned that there are many short positions in Zscaler Inc. on social media. The cybersecurity sector is one of Cramer's favorites, with Zscaler Inc. among his top picks alongside CrowdStrike and Palo Alto Networks. The company's latest quarter showed impressive growth in annual recurring revenue (ARR), reaching $3.77 billion, with net new ARR growing by 35%. Zscaler Inc. also showed strong net new ARR growth even after accounting for the impact of its Red Canary acquisition. The firm expanded its AI initiatives, including AI agents through the Zero Trust platform and corporate large language model deployment via the AI Guard platform. CEO Jay Chaudhry reported a 50% sequential expansion in AI security bookings in the quarter. However, with a revenue guidance for fiscal year 2027 of $3.91 billion to $3.94 billion, growth might decelerate compared to the 25% growth in fiscal year 2026. The firm's R&D expenses increased by 34% annually, reaching $903 million in fiscal year 2026. Hedge fund sentiment towards Zscaler Inc. improved, with 52 out of 1,006 funds holding a stake in the firm by Q1 2026, up from 46 out of 1,022 funds in Q1 2026. Millennium Management and Jericho Capital Asset Management also significantly increased their stakes in the company. When compared to peers Palo Alto Networks and CrowdStrike, Zscaler Inc.'s forward P/E ratio is lower, sitting at 38.9 compared to 87 for Palo Alto Networks and 172 for CrowdStrike. Zscaler Inc.'s short interest is significantly higher than that of its peers, with 5.9% of the float being shorted.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}