Cyber Security for businesses. There is a big focus on workplace technology stocks. Businesses are adapting and IT needs to adapt. He thinks there will be another big earnings growth ahead of them over the next couple of years as they bolt on more products to their platform. (Analysts’ price target is $297.08)
Reported two weeks ago: great numbers with a clean beat and raised their quarter. Shares popped and can continue to rise, but a recent major hack involved cracking a company network by breaking into an employee's Okta logging credentials.
Has been following company closely. Identity verification a good space to be in. Heavy competition from Microsoft etc. Potential for company to be bought. "Show and prove" story for investors. Waiting for results before buying.
Delivered a beat and raised guidance, but the street focussed on the amount of business they have not done, a number which missed expectations. The street sees slowing business ahead. Doesn't help that shares were hot going into the quarter.
(A Top Pick Oct 18/21, Down 75%) He sold in February/March after holding for 4 to 5 months. It had some company specific problems including a security breach even though it is cyber security company. Because of attrition in sales it is having difficulty keeping some of its sales people. Non-profitable tech got hit hard this year.
Cybersecurity. Leader in identity access management. Reported last week, top and bottom lines were strong. Problem was tepid guidance for Q3 regarding integration of an acquisition. Negatives are operational, not about the business. (Analysts’ price target is $108.00)
This cybersecurity stock has hung on during this harsh tech sell-off. OKTA has plunged 74% from last year's peak. Offers great revenue growth. Has rebounded since the trough mid-last month, helped by a clean quarterly beat last week. The PE is much more reasonable.
With the rise of home offices, home computers are vulnerable to hackers. In offices, those computers are protected behind an office firewall, but home is more vulnerable. Okta protects. They handle anything to do with log-ins and credentials. This stock has rallied from $247 to 266 a month ago. This faces little competition in the online identity business.
Likes cybersecurity space a lot. OKTA's identity management is one he continues to do well with. Their interface lets you log in through their platform with a single secure sign-on.
It sold off hard last month along with the cloud sector. But it had a product showcase today, plus their purchase of another cybersecurity company, Off Zero, are tailwinds. Shares jumped over 5%. This offers huge upside.
Today they reported higher than expected sales up 37% YOY though mixed guidance (say some but he disagrees) next quarter and full-year. One metric, remaining performance obligations are very good.
It reports next week and is worth buying, but buy only if you believe the market will change its attitude towards high-flying growth names that don't trade on earnings, but sales.
Cloud stocks have bounced back partially. OKTA got hammered in February and March, but has rebounded $20. This week, OKTA is announcing big new products, but the market doesn't care. Still, he thinks this is a good story though the stock is out of fashion.