Zscaler downgrade hits cyber security stocks as BTIG sees signs of slowdown
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Zscaler (NASDAQ:ZS) shares fell more than 9% on Tuesday as investment firm BTIG downgraded the cyber security company, hitting other stocks in the sector.
Analyst Gray Powell noted that Zscaler (ZS) shares are trading at more than 13 times enterprise value-to-sales and though the company likely had a solid second-quarter, independent field checks "downticked from prior quarters and lead us to believe sales cycles will elongate over the next 6-12 months."

Several other cyber security stocks fell as a result, including Palo Alto Networks (NASDAQ:PANW), Check Point Software (NASDAQ:CHKP) and CyberArk (CYBR), which lost 7.5%, 3.5% and 4%, respectively.
Other cyber security companies, such as CrowdStrike (NASDAQ:CRWD), Tenable (TENB) and Fortinet (FTNT) also saw heavy losses on Tuesday, falling more than 7%, 5% and 8.5%, respectively.
Earlier this month, Wedbush Securities added Fortinet (FTNT) and Checkpoint Software Technologies (CHKP) to the firm's best ideas list after it said it had not seen any signs of a major growth slowdown for the space.