By Wallace Witkowski, MarketWatch
MarketWatch photo illustration/iStockphoto
Zscaler Inc. shares rallied Tuesday following a blitz of announcements that included a partnership with cybersecurity company Crowdstrike Holdings Inc.
Zscaler /zigman2/quotes/203585803/composite ZS +5.83% shares rose 6.5% to $50.72, after touching an intraday high of $51.55, after the company announced that its cloud-security platform will use Crowdstrike’s /zigman2/quotes/212513426/composite CRWD +0.80% AI-powered Threat Graph endpoint protection.
“Zscaler’s robust platform with AI and ML capability, combined with CrowdStrike’s endpoint telemetry, will provide our customers a significantly improved security posture and automated remediation across their organizations,” said Punit Minocha, Zscaler vice president of business development, in a statement.
For the year, Zscaler’s stock is up 29%, compared with a nearly 20% rise in the S&P 500 index /zigman2/quotes/210599714/realtime SPX -2.95% , a 23% gain in the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -2.32% , a nearly 15% advance in the ETFMG Prime Cyber Security ETF /zigman2/quotes/207892345/composite HACK -1.32% , and the First Trust Cloud Computing ETF /zigman2/quotes/205187458/composite SKYY -2.26% up 19%.
Crowdstrike shares also rose, last up 3% at $83.11, or 107% above their IPO price in June. Similarly, Crowdstrike’s stock took a hit earlier in the month as its outlook, too, became less aggressive than in the past.
Zscaler also introduced its B2B product, a service that limits the attack surface of network applications that are connected to the internet.
“With Zscaler B2B, external users only receive admittance to the exact resources and applications needed to do their job, helping organizations to securely collaborate while granting them fast, policy-based access to business-critical resources,” said Patrick Foxhoven, Zscaler chief information officer and vice president of emerging technologies.
Lastly, Zscaler announced that its platform was being distributed over 150 data centers across the globe with its latest opening in Val-du-Roi, Normandy, France. The presence of physical data centers across the globe minimizes the latency between the platform and the user.
“If a threat is detected anywhere, customers are protected everywhere within seconds,” said Amit Sinha, Zscaler chief technology officer and president of research and development, operations and customer service, in a statement. “Every time a new threat is identified in any of the more than 70 billion requests processed daily by the Zscaler cloud, it gets blocked for all Zscaler users, everywhere.”
Cybersecurity has become a hot space recently, not only with IPOs from Crowdstrike and, most recently, Cloudflare Inc. /zigman2/quotes/214109260/composite NET +5.49% , but also with a ramping up of long-overdue “a buy or be bought” mentality settling in as VMware Inc. /zigman2/quotes/209864107/composite VMW -3.00% announced an acquisition of cybersecurity company Carbon Black Inc. Broadcom Inc. /zigman2/quotes/200646538/composite AVGO -2.95% made a bid for Symantec Corp.’s enterprise business, and BlackBerry Ltd.’s /zigman2/quotes/202784246/composite BB -14.77% acquisition of Cylance in February.