OKTA Stock Recent News

The latest trading day saw Okta (OKTA) settling at $74.45, representing a -1.68% change from its previous close.

Todd McKinnon, Okta CEO, joins CNBC's 'Money Movers' to discuss the company's new AI-focused tools, his growth strategy in an increasingly competitive landscape, and more.

LAS VEGAS, Oct. 15, 2024 (GLOBE NEWSWIRE) -- More than 50% of executives expect deepfake attacks to increase over the next 12 months, but only 7% report using new technologies to detect deepfakes*. Meanwhile, researchers are repeatedly demonstrating how AI-generated ID documents, selfie photos, and videos can successfully fool antiquated Know Your Customer (KYC) verification checks.

SAN FRANCISCO--(BUSINESS WIRE)--Okta, Inc. (NASDAQ: OKTA), the leading independent Identity partner, today announced that it will webcast the Opening Keynote of Oktane and Investor Summit on October 16, 2024. Each presentation will be webcast live on the investor relations section of Okta's website at investor.okta.com. Details for each event are as follows: Event: Oktane Opening Keynote - The Future of Identity Security Date: Wednesday, October 16, 2024 Time: 9:00 a.m. Pacific time (12:00 p.m.

The average of price targets set by Wall Street analysts indicates a potential upside of 49% in Okta (OKTA). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

OKTA has been oversold at current levels, as observed in the overly cheap valuations compared to its historical levels and its peers. With the company still reporting robust performance metrics and GAAP profitability for the first time, we believe that its investment thesis remains promising here. This is assuming that the Carahsoft raid does not trigger any headwinds to OKTA's near-term performance, given the recently raised FY2025 guidance.

This identity security leader is down, but not out.

Okta's stock is down 22% despite beating Q2 FY25 revenue and non-GAAP operating income estimates, due to declining cRPO and NRR amidst macroeconomic headwinds. The company continues to show strong upmarket momentum with customer count in its $100K+ ACV cohort growing to 4620, driven by deeper channel partner relationships and product innovation. The company raised its FY25 guidance, which reflects management's optimism, but investor skepticism persists due to declining NRR and cRPO, impacting growth prospects.

CARG, OKTA, and UL made it to the Zacks Rank #1 (Strong Buy) growth stocks list on October 1, 2024.

Shares of Okta have slid ~15% this year, vastly underperforming the S&P 500 and other tech names. I'm upgrading Okta to a strong buy as the company showcases consistent performance amid a macro slowdown, including a FY25 guidance boost recently in Q2. The company's margins have expanded healthily even as growth slowed, while FCF continues to jump quickly, allowing for modest FCF valuations.