’s stock price tanked by 30% following its fiscal Q3 earnings report and guidance update, opening a solid buy-the-dip opportunity. While mixed, the results weren’t the cause of the dip so much as the spending plans. The company aims to increase spending on AI, hoping to capitalize on robust demand.

While near-term headwinds are weighing on price action today, long-term growth opportunities support a thesis for higher prices, and the rebound may come more quickly than the initial price plunge suggests.

The stock fell by 30% by midday, a hefty decline. However, Zscaler’s price had risen by approximately 60% in the weeks leading up to the release, setting it up for a correction. The question is what comes next, and price patterns…