Latest news with #OktaInc
Yahoo
30-05-2025
- Business
- Yahoo
Why Okta, Inc. (OKTA) Went Down On Wednesday
We recently published a list of . In this article, we are going to take a look at where Okta, Inc. (NASDAQ:OKTA) stands against other worst-performing stocks. Okta Inc. declined by 16.16 percent on Wednesday to end at $105.22 apiece as investors soured on the company's weak outlook guidance for the rest of the year. In a statement, Okta, Inc. (NASDAQ:OKTA) said it is now 'factoring in potential risks related to the uncertain economic environment' for the remainder of fiscal year 2026. In the first quarter, Okta, Inc. (NASDAQ:OKTA) swung to a net income of $62 million from a $40 million net loss in the same period last year. Revenues were higher by 11.5 percent to $688 million from $617 million year-on-year. A mobile application developer programming on a tablet, illustrating the power of the company's adaptive multi-factor authentication. For the second quarter, the company expects revenues to grow by 10 percent to a range of $710 million to $712 million, as well as revenues of $2.85 billion to $2.86 billion for the full fiscal year of 2026. 'The world's biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases. We remain focused on driving profitable growth, accelerating innovation, and delivering the only modern, unified identity security platform for our customers,' said Okta, Inc. (NASDAQ:OKTA) CEO Todd McKinnon. Overall, OKTA ranks 2nd on our list of worst-performing stocks. While we acknowledge the potential of OKTA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OKTA and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Okta Inc (OKTA) Q1 2026 Earnings Call Highlights: Strong Profitability Amid Cautious Outlook
Revenue Growth (Q2 FY26): Expected growth of 10%. Current RPO Growth (Q2 FY26): Expected growth of 10% to 11%. Non-GAAP Operating Margin (Q2 FY26): Expected at 26%. Free Cash Flow Margin (Q2 FY26): Expected at approximately 19%. Revenue Growth (FY26): Expected growth of 9% to 10%. Non-GAAP Operating Margin (FY26): Expected at 25%. Free Cash Flow Margin (FY26): Expected at approximately 27%. Warning! GuruFocus has detected 6 Warning Sign with OKTA. Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Okta Inc (NASDAQ:OKTA) reported strong financial performance in Q1 FY26, with record operating profitability and profit margin. The company experienced significant growth in its governance portfolio, with products like Okta Identity Governance and lifecycle management showing substantial adoption. Okta Inc (NASDAQ:OKTA) saw a nearly 400% increase in workflow executions over the past three years, indicating strong integration into customer IT infrastructures. The company is making strides in innovation, particularly with new products like Identity Security Posture Management and Okta Privileged Access, which address evolving cyber threats. Okta Inc (NASDAQ:OKTA) is well-positioned in the US public sector, with strong performance in Q1 and strategic investments yielding positive results. Okta Inc (NASDAQ:OKTA) has introduced additional conservatism in its guidance due to macroeconomic uncertainties, which could impact future performance. The company is facing headwinds in net revenue retention (NRR), which has declined for the fourth consecutive quarter. There is potential uncertainty in the US federal vertical, which could affect Okta Inc (NASDAQ:OKTA)'s federal business due to economic and political factors. Despite strong Q1 results, Okta Inc (NASDAQ:OKTA) is cautious about the macroeconomic environment, which could impact growth in the latter half of FY26. The company's go-to-market specialization is still in early stages, and while initial signals are positive, the long-term success of this strategy remains to be seen. Q: You've layered in additional conservatism into your guidance. What factors influenced this decision, and how do you see these impacting Q1 and future quarters? A: Todd McKinnon, CEO, explained that while Q1 was strong and on track, the guidance reflects a cautious approach due to macroeconomic uncertainties. Brett Tighe, CFO, added that while no macro impact was seen in Q1, the guidance includes potential risks due to the current economic environment, maintaining less conservatism than in previous models. Q: Can you elaborate on the go-to-market specialization and its impact on your business? A: Todd McKinnon noted that the specialization into Okta and Auth0 sellers is progressing well, with strong performance from Auth0 and a solid pipeline build. Eric Kelleher, COO, emphasized that specialization has proven effective in the past and is expected to enhance focus and enablement, benefiting both Okta and its customers. Q: How is the new suite-based pricing for the Okta platform performing, and what are the expectations? A: Todd McKinnon stated that the suite-based pricing introduced in Q1 is showing positive results, with customers opting for bundled products in good, better, best configurations. This approach leverages Okta's broad product portfolio and appeals to customers seeking strategic consolidation around identity. Q: What is the outlook for the customer identity side of the business, particularly with Auth0? A: Todd McKinnon highlighted that Auth0 had a strong Q1, driven by large customer deals. The introduction of Auth for GenAI is expected to further enhance demand, especially among smaller companies innovating in AI, indicating a broad-based opportunity for growth. Q: How does Okta plan to address the emerging market for non-human identities (NHIs) and AI agents? A: Todd McKinnon explained that Okta's comprehensive solution, including Identity Security Posture Management and Privileged Access, positions it well to manage NHIs. The company is focused on innovating and executing to maintain its lead in this growing market, emphasizing the importance of identity in AI-driven environments. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Should You Invest in the WisdomTree Cloud Computing ETF (WCLD)?
If you're interested in broad exposure to the Technology - Cloud Computing segment of the equity market, look no further than the WisdomTree Cloud Computing ETF (WCLD), a passively managed exchange traded fund launched on 09/06/2019. Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors. Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Cloud Computing is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%. The fund is sponsored by Wisdomtree. It has amassed assets over $391.32 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Cloud Computing segment of the equity market. WCLD seeks to match the performance of the BVP NASDAQ EMERGING CLOUD INDEX before fees and expenses. The BVP Nasdaq Emerging Cloud Index is an equally weighted Index, designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers. Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Annual operating expenses for this ETF are 0.45%, making it on par with most peer products in the space. It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Information Technology sector--about 86.90% of the portfolio. Industrials and Financials round out the top three. Looking at individual holdings, Okta Inc (OKTA) accounts for about 2.11% of total assets, followed by Zscaler Inc (ZS) and Dropbox Inc-Class A (DBX). The top 10 holdings account for about 18.34% of total assets under management. So far this year, WCLD has lost about -6.10%, and is up roughly 9.79% in the last one year (as of 05/27/2025). During this past 52-week period, the fund has traded between $28.33 and $41.58. The ETF has a beta of 1.24 and standard deviation of 35.46% for the trailing three-year period. With about 69 holdings, it effectively diversifies company-specific risk. WisdomTree Cloud Computing ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, WCLD is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well. Global X Cloud Computing ETF (CLOU) tracks INDXX GLOBAL CLOUD COMPUTING INDEX and the First Trust Cloud Computing ETF (SKYY) tracks ISE Cloud Computing Index. Global X Cloud Computing ETF has $336.45 million in assets, First Trust Cloud Computing ETF has $3.35 billion. CLOU has an expense ratio of 0.68% and SKYY charges 0.60%. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WisdomTree Cloud Computing ETF (WCLD): ETF Research Reports First Trust Cloud Computing ETF (SKYY): ETF Research Reports Okta, Inc. (OKTA) : Free Stock Analysis Report Dropbox, Inc. (DBX) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report Global X Cloud Computing ETF (CLOU): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-04-2025
- Business
- Yahoo
Is Okta Inc. (OKTA) The Best Performing Cybersecurity Stock So Far in 2025?
We recently published a list of . In this article, we are going to take a look at where Okta Inc. (NASDAQ:OKTA) stands against other best performing cybersecurity stocks so far in 2025. While the Trump administration's shifting tariff policy, which includes the announcement of steep tariffs followed by a 90-day pause on many import taxes, has prompted some economists to predict a recession within the next year, financial analysts believe the cybersecurity sector could prove to be relatively resilient. Wedbush Securities analysts see cybersecurity as a 'defensive' investment that can help investors weather what they call an impending 'Category 5 storm.' Another tailwind for the industry comes in the form of increased cyberthreat activities following economic downturns. These add to the momentum of rising cyberattacks expected by analysts for this year. Although tariffs are projected to have a minimal direct impact on cybersecurity, as most of companies in the industry focus on services rather than physical products, Sonu Shankar, chief product officer of Phosphorus Cybersecurity, an IoT security company, points out that as other industries suffer financial strain and restrict their budgets, spending on security may also face cuts. As companies go through an increasingly complicated cyber threat landscape, keeping up with developing cybersecurity trends has become critical. According to McKinsey, global spending on cybersecurity products and services hit the $200 billion mark in 2024, a significant increase from $140 billion in 2020, as the number and sophistication of attacks increase. In addition, the cybersecurity industry is expected to grow at an annual rate of 12.4% between 2024 and 2027, surpassing historical growth rates as firms ramp up efforts to combat evolving threats. Cybersecurity has undoubtedly grown in relevance as more government services and data become digitized, according to Samir Jain, vice president of policy at the Center for Democracy & Technology, a non-profit that promotes digital rights and freedom of speech. Moreover, as cyber attacks become more complex, the demand for trained workers has increased drastically, with cybersecurity companies forecasting that over 3.5 million cybersecurity roles would remain vacant by 2025. As a result, there are calls for broadening recruiting processes to expand the candidate pool. For this list, we sifted through financial media reports and identified cybersecurity stocks that were popular among elite hedge funds and favored by analysts. We then checked their year-to-date performance and selected the 11 best performing stocks from our initial pool of 35 popular stocks. The names on this list appear in ascending order of their year-to-date performance, as of April 25. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A mobile application developer programming on a tablet, illustrating the power of the company's adaptive multi-factor authentication. Okta Inc. (NASDAQ:OKTA), a leading identity and access management (IAM) company, provides cloud software that enables organizations to manage and secure user authentication across numerous applications. Its solutions also allow developers to incorporate identity restrictions in applications, websites, online services, and devices. On March 31, Cantor Fitzgerald initiated coverage of Okta, Inc. (NASDAQ:OKTA), rating the stock Overweight and setting a $130 price target. According to the firm, Okta remains a leader in the identity security field, despite recent growth challenges. After a period of solid growth, with a compound annual growth rate of 41.5% from fiscal year 2019 to 2024, Okta's revenue growth slowed to 15% in fiscal year 2025, with just 10% growth expected in fiscal year 2026. However, the firm believes that new marketing methods centered on upselling and an improved partner ecosystem could improve sales productivity and perhaps lead to better-than-expected performance. White Brook Capital Partners stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its Q4 2024 investor letter: 'Okta, Inc. (NASDAQ:OKTA) was basically unchanged from where we bought it in 2024, although its had a good start to 2025. Okta's products are used by customers and consumers to manage and secure identities. I believe we acquired shares at an attractive price and look forward to publishing a write up early this year.' Overall, OKTA ranks 2nd on our list of best performing cybersecurity stocks so far in 2025. While we acknowledge the potential for OKTA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OKTA but trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
09-04-2025
- Business
- Yahoo
Strong Bull Signal Flashing on Struggling Cloud Stock
Amid broad-market pressure, cloud stock Okta Inc (NASDAQ:OKTA) has pulled back sharply from its March 24, more than two-year high of $118.07, down 12.6% since the start of April alone. For those , however, the pullback does have OKTA coming into contact with its 126-day moving average, a historically bullish signal. Per Schaeffer's Senior Quantitative Analyst Rocky White, the security is within one standard deviation of the 126-day trendline for the first time in at least eight of the last 10 trading days, after spending at least 75% of the last six months above it. Within these parameters, two other signals occurred in the past three years. OKTA was higher one month later 100% of the time after these events, averaging a large 28.7% gain. The equity is still holding on to a 16.9% year-to-date gain, and has a 14-day relative strength index (RSI) of 15.2. This puts the stock firmly in "oversold" territory, another reason its overdue for a short-term bounce. Sign in to access your portfolio
