New York, June 2, 2026, 11:15 EDT
- Invesco’s QQQM was higher in late-morning trading after TipRanks reported a $835.44 million five-day net inflow into the fund.
- Zscaler fell again Tuesday, a day after a Guggenheim upgrade helped it rebound, underscoring how fast single-name software risk can cut through the AI trade.
- Nvidia’s rise gave the Nasdaq-100 complex support, while QQQ and SPY also traded modestly higher.
Invesco’s Nasdaq-100 ETF QQQM edged higher Tuesday, helped by fresh inflows and gains in Nvidia, even as Zscaler slid nearly 9% and reminded investors that the AI trade is not moving in one clean line. QQQM traded at $306.54, up 0.2%, while the larger Invesco QQQ Trust rose 0.2%; Zscaler was down 8.9% at $141.90.
The move matters now because investors are still putting money into concentrated growth funds even after several sharp stock-level reversals. TipRanks reported that QQQM had risen 1.09% over the past week and took in $835.44 million over five days, citing sentiment around large AI-linked holdings including Nvidia, Apple and Microsoft.
That flow is coming as the market tests whether enthusiasm for artificial intelligence can offset execution misses in software and cybersecurity. Nvidia was up 0.8% Tuesday, giving the index complex a lift; SPDR S&P 500 ETF Trust, the broad U.S. stock-market tracker known by its ticker SPY, rose 0.1%.
QQQM is an exchange-traded fund, a stock-like vehicle that holds a basket of shares. Its regulatory filings say the fund seeks to track the Nasdaq-100 Index before fees and expenses and generally invests at least 90% of assets in index securities, which cover 100 of the largest domestic and international non-financial companies listed on Nasdaq.
The risk was visible in Zscaler. Quiver Quantitative said last week that QQQ had fallen 0.5% on May 27 as Zscaler dropped 31.3%, with Nvidia, Intel, Qualcomm, AMD and Microsoft also among the contributors to QQQ’s losses that day.
Zscaler’s latest numbers were not weak on their face. The company said fiscal third-quarter revenue rose 25% from a year earlier to $850.5 million and annual recurring revenue, a measure of subscription revenue at an annualized pace, also rose 25% to $3.525 billion.
Chief Executive Jay Chaudhry said Zscaler was “ideally positioned as the cybersecurity platform for the AI era,” pointing to its Zero Trust SASE architecture, a security model that limits access and treats every user or device as untrusted until checked. Chief Financial Officer Kevin Rubin said the quarter delivered “record profitability,” with non-GAAP operating margin at 23%. Zscaler, Inc.
But guidance did the damage. Zscaler projected fiscal fourth-quarter revenue of $875 million to $878 million and said full-year free cash flow margin would be about 22.8% to 23.3%, down from its prior expectation of 26.5% to 27%, reflecting higher capital spending.
The stock recovered on Monday after Guggenheim upgraded Zscaler to Buy from Neutral and set a $214 price target. TradingView, citing Guggenheim analysts John DiFucci and Lawrence Vensko, said the analysts saw the selloff as an entry point and wrote that the shares offered a chance to buy a leader in an early security market at about intrinsic value even under a no-growth case.
The push and pull is important for QQQM holders because the ETF gives broad Nasdaq-100 exposure but still depends heavily on large growth names. ETFdb says QQQM is virtually identical to Invesco’s QQQ, one of the oldest, largest and most-traded Nasdaq-100 products, making QQQ the closest peer for investors watching flows and liquidity.
Competition is also coming for the Nasdaq-100 franchise. Reuters reported in April that BlackRock filed to launch an iShares Nasdaq-100 ETF under the ticker IQQ, a direct challenge to Invesco’s QQQ lineup.
The but is simple: inflows can reverse, and AI-linked multiples leave little room for disappointment. Zscaler itself warned that actual results could differ from its outlook because of macroeconomic instability, AI-related platform risks, execution challenges, customer-retention risk, longer sales cycles and fast-changing competition in network security.
