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.

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 potential of Zscaler Inc. (NASDAQ:ZS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.