I boosted my Zscaler stake by 18% this morning based on last night’s earnings review. That article can be found here. The company is at all time lows for forward profit multiples and, as we move through FY 2025, I expect consistent beats and raises on the top and bottom lines.

The main concern stemming from this report is reliance on a 2nd half acceleration to meet its annual billings guidance. As I spelled out in the review, this isn’t them hoping for an acceleration. It’s them knowing the business they’ve already won will lead to that acceleration. Secondly, the profit miss due to raising its effective tax rate assumption is a nothing burger in my mind. The rest of the report (which the article covers in detail) was great.

I view this as a best-in-class network security platform and I want to take advantage of this multiple compression. I trimmed 5% of my stake in The Trade Desk to take some profits amid that firm’s material multiple expansion. I also made a small deposit to cover the rest of the purchase. Here’s what updated holdings look like for me: