S&P 500   4,088.85
DOW   32,654.59
QQQ   306.17
S&P 500   4,088.85
DOW   32,654.59
QQQ   306.17
S&P 500   4,088.85
DOW   32,654.59
QQQ   306.17
S&P 500   4,088.85
DOW   32,654.59
QQQ   306.17

Okta (NASDAQ: OKTA) About to Enter Q2 With A Bang

Friday, April 9, 2021 | Sam Quirke
Okta (NASDAQ: OKTA) Starts Q2 With A BangA 7% jump in Thursday’s session was enough to make shares of Okta (NASDAQ: OKTA) among the best performing of US equities on the day. They’ve now jumped more than 20% in the past month and look to be well on their way to reversing the damage done during last quarter’s correction. 

That 30% dip was in many ways reminiscent of a similar one almost twelve months ago to the day, and it only took until the middle of April last time for Okta shares to get back above their pre-correction levels. This time, there are several fundamental factors in play that should allow the comparison to hold strong

Management Updates

Much of this week’s jump has come off the back of the company’s recent investor day which saw management reaffirming their quarter and full-year guidance. In addition to this, they announced two key product launches which Wall Street was quick to see the upside on. As we’ve seen in the share price since, there’s nothing like some solid reassurance and roadmap updates from leadership to make investors feel the warm and fuzzies after a period of selling. 

Keith Bachmann at BMO sees the updates increasing Okta’s total addressable market by as much as $15 billion, with a ton of potential there for Okta to maintain long-lasting growth. He maintained his Outperform rating and $265 price target on shares, which suggests there’s upside of at least 10% from Thursday’s closing price. 

For a $30 billion company whose Q4 numbers, reported last month, had revenue growing at 40% year on year, you’re inclined to think there’s some value to be had with Okta shares trading where they are. A recent run of high-profile security incidents has made their raison d'être all the more relevant, with few if any enterprise companies prepared to start cutting their spending on security. Last quarter’s announcement of the Auth0 acquisition is still being digested and this week’s guidance affirmation didn’t even include any upside from that side of things.

Auth0 will be bringing more than 10,000 customers with them and will put Okta’s identity management offering on a par with Microsoft’s (NASDAQ: MSFT). The 50% annual growth that Auth0 is also bringing to the table certainly won’t go amiss while Okta themselves can’t be said to be taking the foot off the gas either. The record 600 new customers they closed last quarter is testament to that. 

Getting Involved

Shares found decent support around the $210 level and have now started turning aggressively north. As they make their way through the $200s there’s a rising RSI and a bullish MACD crossover supporting them, making it hard to say they’re not in full rally mode.

For investors with a long-term horizon who are considering getting involved, Okta shares are giving a lot of good reasons to be considered right now. They’re a market leader in their field, printing record growth numbers and have a growing addressable market. Their shares are picking up a head of steam after a significant haircut last quarter, and considering the 130% rally they notched in just three months last time, you’d want to be very bearish on the industry to not be excited this time.

Okta (NASDAQ: OKTA) Starts Q2 With A Bang

Should you invest $1,000 in Okta right now?

Before you consider Okta, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Okta wasn't on the list.

While Okta currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Okta (OKTA)
2.4055 of 5 stars
Microsoft (MSFT)
3.1331 of 5 stars
Compare These Stocks  Add These Stocks to My Watchlist 


Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.