why did zscaler stock crashed on may 26th, it fell from 186 dollars to 126 dollars, approximately 60 dollars got wiped out per share on that day.

As per my understanding there are few reasons why zscaler stock down. Zscaler mentioned their earnings might slow down in next year to 16-17 percent and investors expectation is 18-20 percent growth. Two important members from zscaler left company, and it actually impacted their sales structure. Usually investors prefer to keep company in high valuation when there is huge cash generation, but recent outlook from zscaler reduced from 26 percent to 23 percent due to high infrastructure spending. If you see graph in may, zscaler stock rallied fro 130 dollars to 186 dollars. Considering this rally its obvious customer expectations will be very high. But when zscaler mentioned their revenue might go down in next year, it hit stock badly. Investors became very cautious. But in overall, this stock does not seems to be broken: This quarter revenue grow about 25 percent yoy. ARR reached 3.5 billion dollar. Earnings actually beat expectations. AI security products continued growing rapidly. Actually market indirectly saying if your growth is slow we cannot keep this valuation for your stock. Zscaler reply: They are clearly mentioning cash flow reduced because of more spending in hardware and AI chips by this they are protecting future and it does not mean they are slowing current era. They acknowledged sales leaders departure tumbled guidance but, they recently got one leader and other one they are searching for. Their Q3 ARR beat the expectations, considering next year projection sharp correction happened but current trend with zscaler absolutely doing good. Zscaler Acquisitions: Over the last two years, Zscaler has focused heavily on: AI security through acquisitions such as SPLXAI. Security operations (SecOps) via Red Canary. Browser security and BYOD protection through SquareX. Data security and exposure management through Avalor. Seeing this, we can definitely say Zscaler wants to expand like giant in AI security and its keeping its foot print large. From all this, i believe zscaler is good stock to chose.