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No. of Recommendations: 2
Looking at yahoo! analyst estimates, the high estimate for Zscaler has now materially increased to $281 million for the year. Getting closer and closer to my $285 prediction. MDB has increased their estimates for this year well above the $235 I had penned in.

This price to sale is arbitrary as long as the fundamentals continue. for 2020 analyst have Zscaler plugged in for only 29% growth. If that happens, then yes the prices to sale will come down, but at a higher revenue number. It may be a wash in the end.

For MDB analysts have 41% growth for 2020, so higher expectations.

From these low revenue numbers there is no reason either company cannot beat current estimates. But of course a lot depends on what is going on in the world. But their price to sales numbers are not a bubble, they are not arbitrary, and the number will not disappear as a matter of course. It will only change with a change in fundamentals. Even then, like with Nvidia, the price to sale ratio will probably stay around the same, it is just the projected revenues that will decline (e.g. Nvidia).

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