Zscaler Stock Falls Sharply After an Earnings Beat. Here Is Why.

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Zscaler stock was poised to take a tumble when markets open Friday after the cloud-based internet security company’s guidance deflated investor enthusiasm, even as its second-quarter results handily beat estimates.

Zscaler (ticker: ZS) was falling around 12% to $232.23 in premarket trading on Friday.

For the third quarter ending in April,…

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