Does Okta (OKTA) Offer an Attractive Risk-Reward Profile?
In its second quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Okta, Inc. (NASDAQ:OKTA). Okta, Inc. (NASDAQ:OKTA) is an identity partner that offers products and services to manage and secure identities. The one-month return of Okta, Inc. (NASDAQ:OKTA) was -0.24%, and its shares gained 5.13% of their value over the last 52 weeks. On July 24, 2025, Okta, Inc. (NASDAQ:OKTA) stock closed at $97.89 per share, with a market capitalization of $17.138 billion.
Sands Capital Technology Innovators Fund stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its second quarter 2025 investor letter:
"Okta, Inc. (NASDAQ:OKTA) remains the leading independent provider of enterprise identity and access management software, based on revenue and breadth of integrations. Shares declined after first-quarter results showed current remaining performance obligations (cRPO) rose 14 percent year-over-year, slightly below investor expectations. Management also issued softer-than-expected cRPO guidance for 2026. While Okta has not yet reaccelerated top-line growth, we believe the business presents an attractive risk-reward profile. Our outlook rests on the view that better sales execution and a broader product suite will support Okta's effort to capture more of the enterprise opportunity—its top strategic priority."
A mobile application developer programming on a tablet, illustrating the power of the company's adaptive multi-factor authentication.
Okta, Inc. (NASDAQ:OKTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Okta, Inc. (NASDAQ:OKTA) at the end of the first quarter, which was 72 in the previous quarter. While we acknowledge the potential of Okta, Inc. (NASDAQ:OKTA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Okta, Inc. (NASDAQ:OKTA) and shared the list of best SaaS stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
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