Cloud-based cybersecurity companies ZScaler (ZS) - Get Report and CrowdStrike (CRWD) - Get Report both jumped on Tuesday after they announced a partnership that will provide businesses with real-time security protection across their computer networks.
Shares of ZScaler jumped more than 7% and Crowdstrike stock gained nearly 4% after the companies said they will offer joint customers access to each of their respective cybersecurity solutions that sideline and quarantine infected or non-compliant devices from larger corporate networks and systems until appropriate remediation has taken place.
The so-called integration will offer mutual customers of the two firms always-on, zero-day and ransomware protection with real-time, actionable threat intelligence and automated remediation, both on- and off-network - cyber-tech lingo for real-time immediate protection against hackers, viruses and other virtual threats.
ZScaler shares plunged last week after the company posted fiscal fourth-quarter results that beat analysts' forecasts, but said it expects to post lower-than-anticipated adjusted earnings for next fiscal year. The announcement prompted research analysts at Wedbush to lower their price target on the company's stock.
CrowdStrike shares suffered a similar fate earlier in the month despite the company reporting a fiscal second-quarter loss that was narrower from a year ago and narrower than analysts' forecasts.
The Sunnyvale, Calif.-based company, which the FBI used to assess the Russian hacking of the DNC, posted a non-GAAP net loss of $23.1 million, or 18 cents a share, vs. a loss of $30.4 million, or 69 cents a share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting a loss of 23 cents a share.
ZShares of Zscaler were up 6.97%, or $3.32 a share, at $50.94 in trading on Tuesday. Shares of CloudStrike, meanwhile, were up 4.14%, or $2.81 a share, at $70.67.
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