Zscaler slides after BTIG downgrade deepens pain

Shares of cloud security firm Zscaler ZS.O hit their lowest in nearly three years, last down 9.2%

Brokerage firm BTIG downgrades stock to "neutral" from "buy," citing concerns over demand and potential competition

Says Netskope NTSK.O and Cloudflare NET.N have become more credible rivals

While demand in the near term is stable, the trends beyond that could be more cautious - BTIG

Cybersecurity industry has come under pressure in recent months due to fears of disruption from AI models

ZS is trading at 31.4 times expected earnings over the next 12 months, hovering around its lowest levels ever, according to LSEG data

Out of 50 analysts, 41 rate ZS "buy" or higher, while rest rate it "hold" -- LSEG-compiled data

YTD as of last close, ZS has lost 38.7% of its value in a bruising selloff, while NTSK is down 46.6%

NET, on the other hand, has climbed 7.2% YTD