Is Now the Time to Buy High-Quality Tech & Cybersecurity Stocks Amid Market Volatility?

The tech and cybersecurity sectors have long been resilient during market downturns, but recent volatility has created a unique crossroads for investors. Stocks like MongoDB (MDB), Okta (OKTA), and Zscaler (ZS) have all experienced sharp declines in July 2025, driven by macroeconomic fears over new U.S. trade policies and a weak jobs report. Yet, beneath the headlines lies a compelling story of innovation, growth, and undervaluation that could signal a long-term buying opportunity for investors with a strategic mindset.

The Catalyst for the Dips: A Macroeconomic Perfect Storm

The recent selloff in tech and cybersecurity stocks isn't isolated—it's part of a broader "risk-off" environment. The White House's new global tariff policy has stoked fears of a trade war, while a weaker-than-expected July jobs report raised concerns about the Federal Reserve's rate trajectory. These factors triggered a sector-wide decline, with MongoDB down 9.9% year-to-date, Okta falling 3.4% in July, and Zscaler dropping 3.6% in the same period.

However, as history shows, market corrections often separate short-term noise from long-term value. For investors, the critical question is whether these dips reflect fundamental weaknesses in the companies or merely an overreaction to macroeconomic uncertainty.

MongoDB: A Data Infrastructure Powerhouse with Room for Rebalancing

MongoDB's Q1 2026 results were nothing short of impressive. The company reported $549 million in revenue, a 22% year-over-year increase, with MongoDB Atlas (its cloud-based database-as-a-service) accounting for 72% of total revenue. Customer growth also accelerated, with 2,600 new clients added, bringing the total to 57,100.

Yet, MongoDB's stock is 37% below its 52-week high of $350.13, trading at $220.76 as of August 1, 2025. This divergence between fundamentals and valuation is puzzling. The company's forward P/E of 76.34 and a negative profit margin (-4.09%) suggest the market is pricing in slower growth or margin pressures. However, MongoDB's $421 million in levered free cash flow and $2.45 billion in cash reserves indicate a strong balance sheet.

The key question: Is MongoDB's valuation a reflection of its high-growth SaaS model or a correction to overhyped expectations? For long-term investors, the $800 million in new share repurchase authorization and its strategic moves (like acquiring Voyage AI and pursuing FedRAMP authorizations) could justify a buy-the-dip strategy if the company continues to execute.

Okta: Identity as a Strategic Moat in a Zero-Trust World

Okta's recent 3.4% dip in July was more about sector-wide jitters than poor performance. The company reported $2.68 billion in trailing revenue and a 4.85% profit margin, outperforming MongoDB in profitability. Its forward P/E of 29.07 and a PEG ratio of 0.50 suggest the stock is undervalued relative to its growth prospects.

Okta's dominance in identity and access management (IAM) is a critical advantage in a world increasingly reliant on Zero Trust architectures. With $2.72 billion in cash and a 14.42% debt-to-equity ratio, the company is well-positioned to weather macroeconomic headwinds. However, its 146.35 trailing P/E ratio remains a hurdle for some investors.

The real opportunity lies in Okta's long-term positioning: As enterprises digitize and regulatory demands for identity governance intensify, Okta's Single Sign-On (SSO) and multi-factor authentication (MFA) solutions are likely to remain indispensable. For investors, a 3.4% dip in a fundamentally strong company could be a rare entry point.

Zscaler: Leading the Zero Trust Revolution with Strong Financials

Zscaler's Q2 2025 results were a masterclass in growth and execution. The company reported $647.9 million in revenue (up 23% YoY) and $143.4 million in free cash flow (22% of revenue). Its non-GAAP net income per share of $0.78 and $2.88 billion in cash reserves underscore its financial discipline.

Zscaler's Zero Trust Network Access (ZTNA) solutions are at the forefront of a $12 billion market, driven by the need to secure hybrid work environments and cloud infrastructure. Recent product expansions, including Zero Trust Segmentation for branches and FedRAMP authorizations, further solidify its leadership.

The 3.6% dip in July was part of a broader tech sector sell-off, but Zscaler's 23% YoY revenue growth and improving margins suggest the company is insulated from macroeconomic risks compared to peers. For investors, the question isn't whether Zscaler is a winner—it's whether the current dip reflects a temporary overcorrection.

The Broader Industry Outlook: Why Tech and Cybersecurity Remain Attractive

The cybersecurity industry is projected to grow by 12-15% annually in 2025, driven by AI integration, regulatory tailwinds, and increased threat sophistication. Meanwhile, the tech sector's SaaS and cloud infrastructure segments continue to benefit from digital transformation and remote work trends.

For companies like MongoDB, Okta, and Zscaler, this creates a compounding effect: Strong secular trends in cloud adoption and security demand are likely to outpace macroeconomic risks. The current volatility could, therefore, be a forced liquidation by short-term traders rather than a fundamental shift in the industry's trajectory.

Investment Thesis: Buy, Wait, or Watch?

1. MongoDB (MDB): A buy-the-dip candidate if the company continues to grow MongoDB Atlas revenue and improve margins. The stock's 37% discount to its 52-week high could reflect overcorrection, but investors should monitor AI integration progress and customer retention rates.
2. Okta (OKTA): A high-conviction buy for its identity moat and undervalued P/E ratio. The dip in July was a sector-wide event; Okta's fundamentals remain strong, especially in a Zero Trust world.
3. Zscaler (ZS): A must-buy for investors seeking defensive growth. With 23% YoY revenue growth and a $2.88 billion cash position, Zscaler is a rare combination of innovation and financial discipline.

Final Thoughts: Volatility as a Filter, Not a Foe

Market volatility is often a filter for quality, separating speculative bets from durable businesses. For MongoDB, Okta, and Zscaler, the recent dips may represent a rare alignment of undervaluation and long-term growth potential.

Investors should approach this opportunity with a balanced mindset: Use the dip to increase exposure to high-quality names while maintaining a cash buffer for further corrections. The key is to focus on companies with strong secular tailwinds, like cloud infrastructure and cybersecurity, which are likely to outperform regardless of macroeconomic noise.

As always, do your homework, assess your risk tolerance, and consider the dips not as warnings, but as discounts on the road to long-term wealth.