If You Had Bought Okta Shares A Year Ago You’d Have Made 105%
Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lot more than 100%. For example, the Okta, Inc. (NASDAQ:OKTA) share price has soared 105% return in just a single year. Also pleasing for shareholders was the 20% gain in the last three months. We’ll need to follow Okta for a while to get a better sense of its share price trend, since it hasn’t been listed for particularly long.
Check out our latest analysis for Okta
Okta isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Okta saw its revenue grow by 60%. That’s stonking growth even when compared to other loss-making stocks. Meanwhile, the market has paid attention, sending the share price soaring 105% in response. It’s great to see strong revenue growth, but the question is whether it can be sustained. Given the positive sentiment around the stock we’re cautious, but there’s no doubt its worth watching.
Depicted in the graphic below, you’ll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
We’re pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So it makes a lot of sense to check out what analysts think Okta will earn in the future (free profit forecasts)
A Different Perspective
It’s nice to see that Okta shareholders have gained 105% over the last year. That’s better than the more recent three month gain of 20%, implying that share price has plateaued recently. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). You could get a better understanding of Okta’s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
