Market Overview - All three major indexes ended lower, with the Dow logging its biggest weekly drop since November, driven by uncertainty over costs and disruptions related to artificial intelligence, revived tariff uncertainties, and geopolitical tensions [1][5] - The S&P 500 lost 30.49 points (0.44%) to close at 6,878.91 points, the Nasdaq Composite fell 204.74 points (0.92%) to 22,673.65, and the Dow Jones Industrial Average decreased by 521.69 points (1.05%) to 48,977.51 [5] Earnings and Corporate Performance - Corporate America is projected to see over a 14% gain in earnings for the fourth quarter, indicating a strong earnings season despite market volatility [2][5] - Financial stocks experienced declines due to concerns over potential losses related to the collapse of UK mortgage provider Market Financial Solutions Ltd, affecting banks like Barclays, Jefferies, and Wells Fargo [5] Sector Performance - Defensive sectors such as consumer staples, healthcare, and utilities outperformed during the session, indicating a risk-off environment where investors are favoring stability over growth [4][5] - Tech shares continued to decline, with concerns over AI impacting chip and software stocks, including Nvidia, which extended its previous drop despite solid earnings [5] Economic Indicators - A hotter-than-expected Producer Price Index reading has reinforced expectations that the U.S. Federal Reserve is unlikely to cut interest rates in the near term [5] - The market is experiencing a shift, with defensive areas gaining strength while cyclical growth sectors lag [5] Company-Specific Developments - Zscaler reported a wider net loss in the second quarter, leading to a significant drop in its stock price [5] - Netflix's stock rose after its decision to exit the competition for Warner Bros Discovery, while Paramount Skydance, the likely buyer, saw its shares close sharply higher [5] - Block's stock surged after announcing it would cut nearly half its workforce to integrate AI into its operations [5] - Dell's shares increased after the company projected that revenue from its AI-optimized servers business would double by fiscal year 2027 and promised to return more cash to shareholders [5]

Image credit: Getty ImagesWall Street’s main indexes dropped on Friday as AI anxiety hammered technology stocks, with the Nasdaq and the S&P 500 on pace for their steepest monthly loss since March 2025, while hotter-than-expected inflation data also weakened sentiment.Technology shares faced selling pressure this month as concerns over high valuations and the uncertain payoff from Big Tech’s massive AI spending grew.Nvidia slid 2.4 per cent after plunging more than 5 per cent in the previous session despit ...

Welcome back. Shares of cloud security companies Zcaler sinking today despite solid earnings last night after the close. Joining us this morning is Zcaler CEO Jay Chaldry along with John Fort.Morning John. Morning Carl and uh good morning Jay. Good to see you.You beat on the top and bottom lines yesterday. Your revenue guide for the current quarter slightly ahead of estimates at the midpoint and yet your stock is down more than 14% at the moment supposedly because of annual recurring revenue concerns. At th ...

Wall Street’s main indexes tumbled on Friday as AI anxiety hammered technology stocks, with the Nasdaq and the S&P 500 on track for their steepest monthly drop since March 2025, while hotter-than-expected inflation data also hit sentiment.Technology shares faced selling pressure this month as concerns over high valuations and the uncertain payoff from Big Tech’s massive AI spending grew.In midday trading, the Dow Jones Industrial Average plunged nearly 500 points, or 1%, to 49,011. The S&P 500 lost 0.6%, an ...

Zscaler ( ZS ) is a cloud security platform that acts as a switchboard between users and the internet. Instead of routing traffic through an on-premises firewall or VPN for remote employees, Zscaler operates on the principle of zero trust, where evenBuildingBenjamins is a free stock picking and market commentary investment newsletter. Building Benjamins is the DBA (doing businesses as) publishing entity for Tradition Investment Management, LLC, a registered investment adviser. Benjamin Halliburton, our foun ...

Core Insights - Zscaler operates as a cloud security platform that facilitates secure internet access for users by employing a zero trust model, eliminating the need for traditional on-premises firewalls or VPNs for remote employees [1] Company Overview - Zscaler provides a cloud-based security solution that acts as a switchboard between users and the internet, enhancing security protocols for remote work environments [1] Investment Background - The founder of Tradition Investment Management, Benjamin Halliburton, has a notable investment background, having been recognized as "PSN Manager of the Decade" for both All-Cap and Dividend Value categories in different decades [1]

Core Insights - Zscaler, Inc. and Bharti Airtel have launched the AI & Cyber Threat Research Centre in India to enhance cyber resilience and promote trusted AI adoption across the digital ecosystem [1][2][3] Group 1: Objectives and Scope - The centre aims to protect critical sectors such as telecommunications, banking, and energy, which are vital for India's economic and national security [2] - It will serve as a national collaboration platform involving private sector, public sector, academia, and government agencies to strengthen cyber defenses and develop a future-ready talent pipeline [3] Group 2: Technological Approach - Zscaler emphasizes the need for a modern Zero Trust architecture to secure India's digital systems, as traditional security models are inadequate for the current threat landscape [4] - The partnership will leverage Zscaler's Zero Trust Exchange platform, processing over 500 billion daily transactions to extract threat intelligence [5] Group 3: Collaboration and Commitment - Airtel will enhance network monitoring and develop solutions for faster threat detection, contributing to a safer digital environment for citizens and enterprises [6] - The centre plans to invite additional members from both public and private sectors to expand collaboration and strengthen national cyber resilience [7]

Core Viewpoint - The European Commission has granted unconditional approval for Google's acquisition of Wiz, indicating no competition concerns within the European Economic Area [1] Group 1: Acquisition Details - Google's acquisition of Wiz is valued at $32 billion and was first announced in March 2025 [2] - The US Department of Justice completed its antitrust review in November 2025, removing a significant regulatory hurdle for Alphabet [3] Group 2: Wiz's Role and Market Context - Wiz specializes in cloud-native application protection, providing a platform for organizations to protect applications against cyber threats across various cloud environments [4] - The acquisition is positioned within the rapidly evolving cloud security industry, where Google and Wiz are significant players, competing with Amazon Web Services and Microsoft Azure [4] Group 3: Multi-Cloud Security Solutions - The acquisition aims to enhance Google's position in cloud security and support the use of multiple cloud platforms as AI technology advances [5] Group 4: Regulatory Investigation Findings - The European Commission's investigation assessed potential bundling of Wiz's platform with existing Google products and found sufficient alternative suppliers for customers [6] - Concerns regarding Google's access to commercially sensitive data through Wiz's integrations were addressed, concluding that such information is generally accessible and not sensitive [7] - Teresa Ribera, Executive Vice-President of the EC, stated that the investigation confirmed customers will continue to have credible alternatives and the ability to switch providers [8]

Core Insights - Datadog exceeded Wall Street expectations for its fourth-quarter results, driven by increased adoption of artificial intelligence which boosted demand for its cloud security products [1] Group 1 - The company's shares rose by 10% following the announcement of its strong quarterly performance [1]

Core Insights - Upwind Security, a cloud security startup founded four years ago, has reached a valuation of $1.5 billion and counts major companies like Siemens and Peloton among its clients [2] - The company's co-founder and CEO, Amiram Shachar, expressed that the journey has been filled with uncertainties, particularly in validating market needs and integration challenges [2][3] - Upwind's approach, termed "runtime" security, focuses on internal signals to prioritize alerts and remediation, contrasting with traditional external scanning methods [2][3] Company Development - The founders of Upwind Security previously sold their cloud computing brokerage, Spot.io, to NetApp for approximately $450 million in 2020, which provided them insights into the complexities of cloud security [3] - Shachar noted that traditional security teams often lack the context needed to identify real risks, leading to many false positives [3] - The company faced slow sales initially due to market uncertainties and customer hesitance, but they recognized that an internal-focused security solution is essential for addressing next-generation security challenges [4] Market Position and Growth - Upwind has experienced rapid growth since completing a $100 million Series A funding round in 2024, with a year-over-year revenue increase of 900% and a doubling of its customer base [5] - The company has expanded its market presence from core regions like the US, UK, and Israel to emerging markets including Australia, India, Singapore, and Japan [5] - The recent $250 million Series B funding round, led by Bessemer Venture Partners, will be used for product development, marketing, and enhancing AI capabilities within their cloud security platform [5]