Zscaler (ZS) shares revved up more than 6% on Friday after the cybersecurity company announced it's joining forces with the Aston Martin Aramco Formula One Team. The partnership is a multi-year deal that makes Zscaler the team's official Global Cybersecurity Partner, and it's a pretty big deal for a company that's all about keeping data safe in the cloud.
So, what exactly will Zscaler be doing for Aston Martin? Under the agreement, the team will use Zscaler's Zero Trust Exchange platform to secure everything from car designs and race strategies to the real-time data flowing between the track and the team's U.K.-based headquarters (the AMRTC). In the high-speed world of F1, where milliseconds matter and data is everything, having a robust cybersecurity setup is non-negotiable. Zscaler's branding will also get some prime real estate on the AMR26 race car—appearing on the nose, seatbelts, and wing mirrors, as well as on driver overalls starting at the Austrian Grand Prix. Financial terms weren't disclosed, but the optics are good.
On the trading front, the news gave Zscaler a nice boost. But let's look under the hood. Short interest in the stock has actually ticked down a bit, from 12.07 million shares to 11.88 million shares in the latest reporting period. That's about 11.29% of the float sold short, and it would take short sellers about 2.22 days to cover their positions based on average daily volume. So, not a massive squeeze, but the trend is moving in the right direction.
Technically, the picture is a bit mixed. Friday's rally pushed the stock back toward its short-term moving averages. It's trading near its 20-day simple moving average of $130.72 and just below its 20-day exponential moving average of $131.77. But the longer-term trends are still under pressure: shares are about 7.4% below the 50-day, 11.1% below the 100-day, and a whopping 37.1% below the 200-day moving average. The relative strength index (RSI) sits at 47.47, which is neutral territory—not overbought, not oversold. Traders might be watching resistance around $133 and support near $128.
Despite the technical headwinds, Wall Street is still bullish. The consensus rating is a Buy, with an average price target of $198.14. Recent analyst actions include KeyBanc maintaining an Overweight rating but lowering its price target to $176 on June 25, Stephens keeping an Overweight and $200 target on June 12, and Canaccord Genuity sticking with a Buy and $210 target on June 11. So, analysts see value here, even if the stock has been lagging.
At the time of publication, Zscaler shares were up 5.88% at $131.07. The F1 partnership gives the company a flashy new customer and a chance to show off its tech in a high-stakes environment. For investors, it's a reminder that cybersecurity isn't just about protecting data—it's about enabling speed, and that's a story that might have some staying power.
