This is a company trying to privatize manned spaceflight. Free cash flow of $37 million, a record for the company. Traders might have sold off OKTA stock upon the earnings release, but this doesn’t mean that Okta won’t prosper as a business in a growth-oriented market. Feel free to reach out at nkirsch@forbes.com with any story ideas or tips, or follow me on Twitter @Noah_Kirsch. Typically, such a disconnect is corrected in due time. "Pivoting with Agility": Augmented Reality, Virtual Events & Accelerating Megatrends. . MGM is using it for contactless check-ins. As to the last point, McKinnon said 70% of data breaches are due to compromised login credentials, so there has been plenty of demand for Okta's service. I'm intrigued by, CrowdStrike stock is far and away the most expensive of the growth stocks on this list. All Rights Reserved, This is a BETA experience. He enjoys the outdoors up and down the West Coast with his wife and their Humane Society-rescued dog. Apple’s WWDC Has Moved Online. When securities are temporarily mis-priced, nimble traders can take advantage of this situation. Cloud Companies Won’t Float Above Pandemic, TripActions Lays Off Hundreds of Employees Amid Coronavirus, Travel Startup TripActions Hires First CFO, Investors Seek Middle Ground in Convertible Securities, Stocks to Watch: Dollar General, Best Buy, Burlington Stores, Okta and More, Google Adds Tools to Attract More Corporate Customers, Stocks to Watch: Uber, Gap, Costco, Zuora, Okta, Tesla, Big Lots, Dell, GameStop, Wall Street Isn’t Buying What Silicon Valley Is Selling, Gold Badges and Boozy Breakfasts: Inside the Frenetic Fight for IPO Listings, Stocks to Watch: Disney, Blackstone, Amazon.com, DSW, Okta, Tilray, HealthEquity, Revlon, Starbucks, 5 Explosive Cybersecurity Stocks to Keep on Your Radar, Okta, CrowdStrike, Netskope, and Proofpoint Join Together to Secure Remote Work, US Stocks That Surged To 52-Week High: $DUK $OKTA $FDX. “[Okta] had been a loved stock before COVID, and it’s been an even more loved stock ever since.”, Even McKinnon admits to being smitten, despite his self-proclaimed guilt. The stock trades at 76x next year's earnings and a little over 8x this year's revenue guidance. Still, based on that outlook, the price-to-sales ratio only gets reduced to 18.4 times forward revenue -- still a premium to be sure. Early on McKinnon developed an affinity for computers. Okta's cofounders, Frederic Kerrest (left) and Todd McKinnon. Data source: Okta. Stock-market election fears have traders revisiting Bush-Gore battle, Good Company: How Rumpl Improved Its Relationship With the Native American Creative Community, Snowflake Is the Priciest Software Stock After IPO. “Overnight, they're touching the drivers of the security market of the future,” says Tilton. “There's a lot of technicality in cybersecurity,” says Joshua Tilton, an analyst at Berenberg Capital Markets. Neither a $1.5 billion market capitalization nor a roughly 5x revenue multiple look onerous by the standards of the sector. The firm's products include single sign-on, multi factor authentication, API access management, authentication, user management, and lifecycle management. That should be a huge competitive edge. Sie können Ihre Einstellungen jederzeit ändern. Forget Snowflake: 3 Cloud Stocks I'd Rather Own, 3 Growth Stocks for In-the-Know Investors, Okta Homes In On a $25 Billion Market Opportunity, Why Enterprise Software Stocks Are Soaring Today, Here's Why Appian, Datadog, Okta, and Other Tech Stocks Are Higher Wednesday, Copyright, Trademark and Patent Information. What Wall Street should expect in a Biden administration. Q4 and FY2020 Earnings Results Let's conquer your financial goals together...faster. I graduated from Tufts University with a dual degree in international relations and Arabic. She signed off on the plan. Für nähere Informationen zur Nutzung Ihrer Daten lesen Sie bitte unsere Datenschutzerklärung und Cookie-Richtlinie. In 2011, “we missed our numbers by a mile,” Kerrest says. Privacy Notice and Before that, I spent a year on the road—driving for Uber in Cleveland, volcano climbing in Guatemala, cattle farming in. As the market took a step back Thursday, it’s worth noting that this second-quarter earnings season has been notably better than Wall Street expected. “When I look at stock performance, or my own net worth, I think that it's satisfying to see the company be successful,” he says. Investors in it for the long haul should be just fine, and I'd urge those who want to buy the stock now to be ready to buy the inevitable dips. An expensive stock. A fellow Salesforce alum, Frederic Kerrest, joined him soon after, and they tinkered on their initial concept: software that would help companies measure the reliability of their cloud-based applications. Specifically, OKTA stock bottomed out in mid-March at $88.66 and rocketed up to its 52-week high of $226.89 during the summer. Cookie Notice. If Microsoft traded at the same level, it would be worth $17 trillion. Can Pinterest achieve a market value above that of social media rivals.