13 Best Cybersecurity Stocks to Buy According to Billionaires

6. Zscaler Inc. (NASDAQ:ZS)

Number of billionaire investors: 11

Dollar value of holdings: $930,319,563

Zscaler Inc. (NASDAQ:ZS) provides a cloud-native, multi-tenant security platform designed to secure user access to cloud resources based on identity, context, and business policies.

Zscaler Inc. (NASDAQ:ZS) has strengthened its cybersecurity platform with the launch of Zscaler Asset Exposure Management. It is a new Cyber Asset Attack Surface Management (CAASM) solution designed to enhance asset risk visibility and security gap mitigation. Built on ZS’s Data Fabric for Security, the platform aggregates data from hundreds of sources, leveraging 500 billion daily security transactions and insights from over 50 million devices to identify, prioritize, and remediate security risks.

For Q2 FY2025, the company reported $647.9 million in revenue, a 23% year-over-year increase. Zscaler Inc. (NASDAQ:ZS) narrowed its GAAP net loss to $7.7 million, significantly improving from $28.5 million in Q2 FY24, while non-GAAP net income rose to $127.1 million from $99.4 million. Non-GAAP EPS grew to $0.78, up from $0.63, reflecting stronger operational efficiency. Free cash flow increased to $143.4 million compared to $100.8 million in Q2 FY24. With cash and short-term investments rising to $2.88 billion, an increase of $470.6 million since July 2024, ZS remains financially strong, reinforcing its leadership in cloud security and Zero Trust adoption.

Analyst Tal Liani from B of A Securities upgraded the stock from Hold to Strong Buy, increasing the price target from $215 to $240.