Company Overview - Okta is a $13 billion provider of identity security solutions, specializing in ensuring authorized IT personnel are authenticated and monitored [1][4] - The company is aggressively pursuing new AI threat vectors to enhance its security offerings [4] - Okta recently expanded its Auth0 service to attract more corporate clients, increasing the free plan to 25,000 monthly active users (MAUs) and adding features like passwordless authentication and custom domain support [7] Financial Performance and Market Sentiment - Okta's stock price dropped over 17% on the day of its late August earnings report and has declined by more than 25% since then [1] - Despite the stock price decline, the Zacks consensus EPS estimate for fiscal 2025 (ending in January) rose 7% from $2.40 to $2.57, representing a 29X P/E ratio in an industry with 90X P/Es [4] - Large institutions were net buyers of Okta shares in Q2, and the average price target among 34 analysts is above $105, with a low target of $75 [2] Industry and Competitive Landscape - The cybersecurity industry is facing increasingly sophisticated AI-powered bot attacks, with bots making up nearly 50% of all internet traffic [6] - Okta's multi-factor authentication (MFA) and AI-powered bot detection have been effective, blocking 79% of automated login attempts and reducing bot traffic by 90% over a 90-day period [6] - Ransomware costs are expected to grow at a 30% CAGR from $35 billion in 2023 to $220 billion by 2030, highlighting the growing need for cybersecurity solutions [10] Strategic Initiatives and Product Development - Okta's Auth0 expansion aims to provide developers with scalable, secure, and customizable identity solutions, enabling them to build secure applications from the start [7][8] - The company's approach of providing powerful tools to developers mirrors successful strategies seen in other tech ecosystems, such as NVIDIA [8] - Okta is addressing the evolving threat landscape by enhancing its identity security offerings and leveraging AI to combat advanced cyber threats [4][5]

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, September 24th: Yelp Inc. (YELP) : This company that helps connect consumers with local businesses carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.7% over the last 60 days. Yelp has a PEG ratio of 0.81 compared with 1.52 for the industry. The company possesses a Growth Score of B. Okta, Inc. (OKTA) : This identity solutions company carrie ...

Jonathan Knowles/DigitalVision via Getty Images Okta (NASDAQ:OKTA) reported 2Q25 earnings last week and beat on all metrics. Investors opted to sell and then ask questions, and I'm here to leave no questions unanswered. The stock took quite a massive dip after earnings due to conservative cRPO 3Q25 guidance, even though the company raised FY25 guidance on all metrics. I'm just going to come out and say it: I believe the market's reaction was more on the dramatic side, but I did come in short by underestimat ...

Okta Inc. (OKTA, Financial) reported second-quarter 2025 earnings last month, delivering a beat-and-raise performance. Despite this, the stock experienced a sharp sell-off, dropping nearly 20%. In this discussion, I will delve into the factors that likely contributed to this decline and offer perspective on whether the current price level presents a buying opportunity. Near-term prospects Okta specializes in ensuring the right people have access to the right technology at the right time. They achieve this t ...

Okta, Inc. (NASDAQ:OKTA) Goldman Sachs Communacopia + Technology Conference September 10, 2024 6:45 PM ET Company Participants Todd McKinnon - Chairperson of the Board, Chief Executive Officer, Co Founder Conference Call Participants Gabriela Borges - Goldman Sachs Gabriela Borges I think we can go ahead and kick it off. Thanks for joining us this afternoon at the Okta session at the GS Communacopia and Technology Conference. I'm Gabriela Borges, I cover security here at Goldman and delighted to have on sta ...

Okta, Inc. (NASDAQ:OKTA) Goldman Sachs Communacopia + Technology Conference September 10, 2024 6:45 PM ET Company Participants Todd McKinnon - Chairperson of the Board, Chief Executive Officer, Co Founder Conference Call Participants Gabriela Borges - Goldman Sachs Gabriela Borges I think we can go ahead and kick it off. Thanks for joining us this afternoon at the Okta session at the GS Communacopia and Technology Conference. I'm Gabriela Borges, I cover security here at Goldman and delighted to have on sta ...

Okta, Inc. (NASDAQ:OKTA) Citi's 2024 Global TMT Conference September 5, 2024 2:10 PM ET Company Participants Brett Tighe - CFO Conference Call Participants Fatima Boolani - Citi Fatima Boolani Fatima Boolani here. I run the -- jointly run the Citi software equity research franchise here. And we are well into our afternoon sessions, and I am so thrilled to be hosting Brett Tighe, CFO of Okta, with me today. Thank you for being here. Brett Tighe Happy to be here. Thank you for having me. Question-and-Answer S ...

Buying the dip may not make sense. Shares of cloud identity-management company Okta (OKTA -0.73%) have provided investors with disastrous returns over the last three years that were made worse by a huge sell-off in the stock following the tech company's fiscal second-quarter earnings report. Shares are down more than 20% since the Aug. 28 report. Though it might be tempting to buy the dip in this growth stock, investors may want to think twice before they do. This may be a growing company, but that doesn't ...

Disappointing guidance in its second-quarter earnings report weighed on the cybersecurity stock. Shares of Okta (OKTA -0.62%) were pulling back last month after the cloud-based identity software specialist posted disappointing results in its fiscal 2025 second-quarter earnings report toward the end of the month. Okta's growth rate has slowed substantially since the end of the pandemic, following challenges with its integration of Auth0 and multiple security breaches. The second-quarter results beat nominal ...

Shares crashed as investors worry about future growth. Okta (OKTA -3.42%) shares spiraled lower after the cybersecurity company reported solid second-quarter results but offered a disappointing outlook. On the face of it, the latest numbers looked good. Okta's Q2 revenue jumped 16% year over year to $646 million, while subscription revenue climbed 17% to $632 million. Adjusted earnings per share (EPS) surged from $0.31 a year ago to $0.72. The company had guided for 13% to 14% revenue growth and adjusted EP ...