Zscaler (NASDAQ:ZS) shares are down more than 3% before the market opens on Tuesday. This is because the cybersecurity company announced that Amit Sinha will step down as President on October 21.
Zscaler said that Mr. Sinha has agreed to be the CEO of a privately owned technology company. He will stay on as a member of the company board.
Analysts at MoffettNathanson say that the news shows “the kind of talent that Zscaler is growing.” They also think that replacing Mr. Sinha with a new President “is not necessary” and that Mr. Sinha will continue to be the driving force behind the company’s technological innovation.
Analysts at Guggenheim said that Zscaler told them that Mr. Sinha is not going to work for a competitor.
“Mr. Sinha was an important and well-known part of the organisation, but we don’t think it will be too much of a problem. “There won’t be any changes to the product organisation, which is already run by others.” “Even though it’s never (or rarely) good news when a C-level executive leaves a company, we don’t think this will affect Zscaler’s short- or long-term prospects, and it seems like a unique chance for Mr. Sinha,” the analysts wrote in a client note.
Zscaler stock is down more than 50% so far this year.
