|Bid||281.47 x 1000|
|Ask||281.59 x 800|
|Day's Range||277.39 - 282.05|
|52 Week Range||204.95 - 291.71|
|Beta (3Y Monthly)||1.04|
|PE Ratio (TTM)||52.32|
|Earnings Date||Jun 18, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||295.38|
Okta (NASDAQ:OKTA) has had an impressive run, with Okta stock trading under the radar as a cloud play, and cloud stocks are on fire. There's no other way to put it.As the global enterprise world pivots from on-premise to cloud-hosted solutions for price, convenience, and accessibility advantages, the providers of those cloud-hosted solutions are growing by leaps and bounds.InvestorPlace - Stock Market News, Stock Advice & Trading TipsConsequently, the stocks of cloud titans like Salesforce (NYSE:CRM), Adobe (NASDAQ:ADBE), Amazon (NASDAQ:AMZN), and ServiceNow (NYSE:NOW) have soared.Okta has gained far more than any of those headline cloud stocks over the past few years. It went public in April 2017 at $17 per share and trades today around $110.What's the story behind the huge gains from Okta stock? Cloud security. Broadly speaking, everyone and their best friend in the business world is pivoting to the cloud. That means there's a whole bunch of corporate and customer data up in the cloud. Security surrounding that data isn't all that great, hence the huge volume of hacks and data breaches over the past few years. Thus, enterprises are increasingly seeking a better cloud security solution. Okta provides just that.As such, Okta has found itself at the convergence of two secular tailwinds (cloud adoption and cybersecurity). Those two tailwinds have produced huge growth for the company. Shareholders have cheered that big growth, and Okta stock has taken off like a rocket ship.At these levels, there's no hiding the truth that Okta stock is expensive. But, is it too expensive? I don't think so. If you take a big picture outlook on the stock, this is a big growth company with a ton of upside left over the next several years.As such, I think investors who are late to the party shouldn't be too concerned. There's still plenty of long term upside left. Big Market OpportunityIn the big picture, Okta is attacking an exceptionally valuable and large market with a unique solution, and as this unique solution gains scale over the next several years, Okta's revenues and profits will continue to grow at a robust pace.Okta operates in the enterprise cloud market. This is a huge market. Global cloud spend is projected to hit $500 billion by 2020. But, only 20% of enterprise workloads have migrated to the cloud so far. Over time, that number will move towards 100% given that cloud-hosted solutions provide price, convenience, and accessibility advantages over on-premise solutions.Thus, the big cloud growth narrative is only one-fifth of way through, meaning that the enterprise cloud market is not just big, but also growing very quickly, too.Within this market, security is a big issue. Everyone is pivoting to the cloud. But, they aren't just pivoting wholesale to one cloud. Instead, the norm in the cloud market is hybrid cloud, which is essentially adopting multiple different cloud applications depending on the use case (Adobe for visual solutions, ServiceNow for automation, Salesforce for marketing, so on and so forth).Consequently, the enterprise pivot to the cloud simultaneously means a pivot of valuable corporate and customer information across various different cloud service providers.That data needs to be protected. But, protecting it isn't very easy to do. That's why we have seen so many headline data breaches and hacks over the past few years as the cloud pivot has gained momentum. Thus, consumers are increasingly seeking a uniform cloud security solution. Unique Solution Gaining ShareOkta provides this uniform cloud security solution, and does so in a unique way.Okta is creating a new cloud security solution which allows enterprises to seamlessly secure information across all cloud apps at the same time. They call this solution the Identity Cloud.Essentially, this is a cloud solution centered on individual identity that allows millions of people across a corporate ecosystem to seamlessly, securely, and uniformly connect to the technological tools that the corporation is adopting. This may sound like a complex idea. It's not. Okta is simply creating an identity-driven security solution wherein controlled identity information is the only way in and out of a system.This is a big idea. Importantly, it's a big idea that gaining traction rapidly.A few years ago, Okta had about 2,000 customers and was doing $30 million in quarterly revenue. Okta closed fiscal 2019 with 6,100 customers on a $115 million revenue quarter. Further, the company exited 2019 with 50%-plus revenue growth rate and a 40%-plus customer growth rate.In other words, not only has Okta grown very quickly over the past several years, but it is still growing very quickly today, and hardly losing any steam. As such, it is clear to see that Okta's unique Identity Cloud security solution is rapidly gaining share in the cloud security market. Big Valuation Warranted Long TermOkta stock is trading at nearly 700-times projected profits that are still two years out. Thus, this stock is richly valued. But, is it overvalued? I'd say no, if you look at the big picture.Okta has just over 6,000 customers. There are over 100 million businesses in the world, all of whom could use Okta's Identity Cloud. Further, cloud spend is at $500 billion and growing. Okta's revenues this year are projected around $535 million.Thus, in the big picture, this company is very small relative to its market opportunity. Because of this, management's long term target for 30%-plus annualized revenue growth into fiscal 2024 seems very doable. Even thereafter, this company should be able to do 20%-plus revenue growth into 2030, as more companies pivot to the cloud and cloud security demand globally grows.Under those assumptions, this could easily be a $5 billion revenue company one day, and probably by 2030. Gross margins are sky high and projected to rise north of 80% soon. Meanwhile, opex rates are big, but dropping rapidly, and could fall towards 50% at scale. That means 30% operating margins are achievable. On a $5 billion revenue base, that implies $1.5 billion in operating profits. Assuming a normal tax rate and some growth in the share count, that could flow into $8 in EPS by 2030.Application software stocks normally trade at 35-times forward earnings. Applying that average multiple to $8, a realistic 2029 price target for Okta stock is somewhere around $280. Discounted back by 10% per year, that equates to a fiscal 2020 price target of just under $120. Thus, while Okta stock is richly valued, it isn't overvalued. Yet. Bottom Line on OKTA StockOkta stock has been one of the market's biggest winners over the past two years, and with good reason. This company is in the early stages of a really powerful long term growth narrative that will produce robust profit growth over the next several years.To be sure, a lot of this upside is already priced into Okta stock. But, not all of it. As such, while gains will be more muted going forward, this stock will remain on a medium to long term uptrend for the foreseeable future.As of this writing, Luke Lango was long OKTA, CRM, ADBE, AMZN, and NOW. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Okta Stock Is the Sleeper Cloud Play You've Been Looking For appeared first on InvestorPlace.
Adobe (NASDAQ:ADBE) isn't just Photoshop and PDF documents anymore. Indeed, ADBE stock has been an investment in a digital marketing company since early 2017. That's when it debuted Experience Cloud and Advertising Cloud: two platforms that help organizations market and measure their online efforts.Source: Shutterstock It has been a solid success as a result too, if for no other reason than those offerings drive recurring revenue.The company just took its e-commerce arm to a whole new level though, partnering up with sector giant Amazon.com (NASDAQ:AMZN). The deal helps Amazon's third-party sellers cultivate relationships and manage their business better.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMost fans and followers of Adobe acknowledged and respected the development. Not enough investors, however, seemed to fully appreciate the potential of this new offering for the ADBE stock price. Meet MagentoThe rise of third-party sellers on e-commerce platforms represented a hot button for years. But the matter came to a strange head last month when Amazon CEO Jeff Bezos lamented, "Third-party sales have grown from 3% of the total to 58%. To put it bluntly: Third-party sellers are kicking our first-party butt." * 7 High-Yield REITs to Buy (Even When the Market Tanks) The math is presumably correct, but the premise is misleading at best. Third-party sellers have never made up a bigger portion of Amazon's total sales than they do right now. However, they've also arguably never been more miserable about it thanks to their constant competition with Amazon's own retail-sales efforts.Amazon has been and continues to cheer "the little guy" using its sales venue, promising tools to better empower them. As it turns out, the company wasn't just blowing smoke. Its latest option does that and much more.The program is called "Branded Stores for Amazon Sellers." However, existing AMZN customers may recognize the new features look very similar to Adobe's Magento platform.Regardless of the wrapper and label, the results are the same: faster page-load times, better conversions, options to scale for online-shopping surges and one-click checkouts, just to name a few features. The platform also raises the profile of Adobe stock.Those niceties are secondary to what Magento's Branded Stores for Amazon Sellers ultimately delivers though. As Adobe's vice president of commerce product and platform Jason Woosley explains:Small and mid-market businesses are taking direct ownership over how they manage customer experiences to differentiate, grow and build loyalty. Our work with Amazon empowers this large community of sellers to get closer to their customers while saving them time and money on development. Relationship BuildingIt's a product development that cuts straight to the heart of a matter which has long frustrated several Amazon vendors. No matter how well the seller serves the customer, Amazon.com owns the relationship, and oversees the experience.Not any longer though. In an environment where would-be rivals like Shopify (NYSE:SHOP) are thriving explicitly because it's helping budding online entrepreneurs develop real customer relationships, Amazon is being forced to do the same.And Shopify is undoubtedly rattling Amazon's cage in this way. Shopify's director of product Michael Perry recently explained:The most important thing for entrepreneurs is to establish that direct relationship with their customers. Personally, I don't know why anyone would want someone else to own their customer relationship. Unfortunately, that's the exchange that takes place with a digital marketplace.It was a veiled jab at Amazon, but a well-deserved one. It's the new norm in e-commerce. Shopify has got several quarters of strong double-digit sales growth to verify it's this kind of platform that online retailers want.Adobe's solution is different than Shopify's though, in that Adobe's Magento isn't a one-stop-shop. Adopters can integrate Magento with multiple e-commerce venues.And it's already been integrated with another big one, as the partnership with Amazon isn't exactly exclusive. For instance, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) now allows online sellers to manage their Google ad campaigns via Magento.It's hardly a threat (yet) to Amazon. But if Adobe continues to partner with anyone and everyone that wishes to take aim at Amazon.com, the half of the e-commerce market Amazon doesn't own could collectively make a dent in Amazon's dominance.And Adobe is more than happy to sell them their bullets. That bodes well longer term for the ADBE stock price. Bottom Line for ADBE StockIt's not necessarily a reason to step into ADBE stock, particularly right now. Shares are up 36% since their late-December low, and back within sight of record highs. The equity is vulnerable to profit-taking. This vulnerability is more pronounced in that Adobe stock never really burned off the froth of the 170% gain it reaped between the end of 2016 and September of last year.Besides, it's still the early innings for Magento's Branded Stores for Amazon Sellers, as well as for Magento's non-Amazon growth.There's little doubt as to the marketability of the new option for Amazon's third-party vendors, however, as well as for online retailers not using Amazon.com. It's one big step closer to the tool online sellers have been looking for.Therefore, it wouldn't be crazy to take a shot on ADBE stock on any decent pullback. The sentiment applies even before Magento has its full chance to make a fiscal impact.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post ADBE Stock May Win the E-Commerce War … From Behind appeared first on InvestorPlace.
Adobe Systems (ADBE) closed the most recent trading day at $275.45, moving -1.57% from the previous trading session.
An Atlanta creative content agency plans to boost its workforce by 60% thanks to its recent venture capital funding.
Coatue Management is a New York City-based hedge fund that was launched back in 1999 by Philippe Laffont. The fund provides additional office in Menlo Park, California. At the end of 2016, it held around $10.25 billion in assets under management. Coatue Management looks for the stocks to invest in from the technology sector, utilizing […]
Nobody is questioning the business prospects of Adobe (NASDAQ:ADBE). But on the price chart, ADBE stock's longevity and top-dog status among the bulls is looking tenuous at best. Let me explain.Source: Shutterstock Wall Street loves Adobe stock. The analyst community collectively has 17 buys on the company behind ever-present products such as Photoshop, Acrobat and Illustrator. The staunch support has manifested itself into a median price target almost 6% above yesterday's $283.55 close.Want more? The Street's $340 high estimate is 20% removed from today's levels and 17% north of Adobe stock's all-time-highs set in early May. Mind you, those heady expectations are despite shares having enjoyed a rally of around 300% since 2016 and a massive return for its investors of about 1,650% over the last decade.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the other extreme? Currently, there's not a single sell recommendation on Adobe stock.Most recently and backing the Street's enthusiasm, ADBE's CEO enjoyed a bit of cushy armchair talk on CNBC's Mad Money. The interview highlighted the company's enviable position within secular trends for design and creativity, emphasized Adobe's exposure to the trade war is "fairly minimal" and the outlook for 2019 looks strong. * 7 Cloud Stocks to Buy on Overcast Days And away from the cameras? Adobe's soon-to-be-released Photoshop Creative Cloud for the Apple (NASDAQ:AAPL) iPad is the latest innovative tool backing up the upbeat talk.Nevertheless, when I see a picture or chart illustrated like Adobe stock's below, there's good reason to be more cautious than carefree. Adobe Stock Monthly ChartClick to EnlargeWhat concerns me are indications of price and pattern weakness emerging on Adobe stock's longer-term monthly chart. A two-candlestick reversal formation centered on the 2018 all-time high is developing. This pattern is closing in on a bearish signal to short ADBE stock below April's low of $263.72. The formation also maintains a supportive, weak-looking stochastics set-up.At a minimum, for investors that have participated in Adobe stock's burly rally, confirmation of a top should be used for profit-taking as the chances for a much larger correction increases. Adobe Stock Short StrategyFor investors who are comfortable shorting, as mentioned, I'd wait for pattern confirmation as ADBE stock trades through $263.72. Using a pattern breaking stop-loss above $291.71 amounts to short exposure of about $28 or roughly 11% stock risk. * 7 Stocks to Buy that Lost 10% Last Week Alternatively, if a short in Adobe stock signals, a tighter exit above the September high of $277.61 equates to reduced risk of around 5%. That kind of price action could be enough of an indication our technical concern was misplaced.On the downside and if conditions allow for a top to play out, the "X" on the ADBE stock chart marks the spot or more aptly, 'illustrates' where I see the first layer of substantial support. This is backed by a key Fibonacci trend-line at the December lows. Shorts would also be looking at solid open profits versus the position's initial risk. As much, this area makes a good choice for taking partial profits or maybe even giving Adobe stock a second look for an entirely new position.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Cloud Stocks to Buy on Overcast Days * 6 Stable Stocks Worth Buying for Protection * 5 Active Vanguard Funds That You Have to Own Compare Brokers The post Donat Look Now, But Adobe Stock is Finally a Short appeared first on InvestorPlace.
DocuSign, the leader in electronic signatures, has barely tapped its total addressable market, and that means its shares have plenty of room to rally.
Despite overvaluation concerns, the U.S. technology sector has had a stellar rally in the period between 2010 and so far in 2019, also popularly known as the twenty-tens.
Adobe Experience Platform and Marketo Engage Combined with Software AG’s Technology Helps Companies Stitch Customer Data from Across Systems
There's nothing to be impressed about Nokia (NYSE:NOK) stock this year. It seems like nothing is going right. So far, the return on Nokia stock price is a miserable -17%, despite a strong bull move in the tech space.Source: Shutterstock But there is nothing new about this. Let's face it, Nokia stock has not had much traction for quite a while. Note that the average return for the past decade is -5.81%.Despite all this, might there still be a contrarian play here? Maybe the company's strategy is the right one? Hey, after all, we've seen slumbering tech gains like Microsoft (NASDAQ:MSFT) and Adobe (NASDAQ:ADBE) find ways to renew their businesses. And this has resulted in substantial gains for shareholders.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Forever Stocks to Buy for Long-Term Gains So, could there potentially be something similar with NOK stock? Granted, this may seem kind of laughable right now. The company has shown lapses in execution, as witnessed in its latest earnings report. Nokia posted a loss of 2 cents a share and revenues of $4.49 billion, while the Street was looking for a profit of 2 cents a share and revenues of $5.06 billion.But when it comes to transforming a company, the progress can be choppy. Competition remains tough and there are long sales cycles.However, NOK is still a much better company today, as it has done much of the needed heavy-lifting of cost cutting and restructuring to streamline operations. There have also been some major acquisitions, such as for Alcatel-Lucent.Yet, the most important potential catalyst is the emergence of 5G. As an indication of the importance of this trend, look at Apple (NASDAQ:AAPL). It appears that the key reason it settled its massive lawsuit against Qualcomm (NASDAQ:QCOM) was to ensure that the company has the necessary technology for 5G. This technology is a must-have.While mobile network transitions do not necessarily result in major demand for equipment, this time is likely to be different. Speeds for 5G are likely to be 100 times faster than 4G, which means there will probably be a surge in innovation. And this means more than just greatly improving smartphones. There will also be opportunities in categories like IoT (Internet-of-Things), gaming, education, autonomous cars and so on.To play in this market, there needs to be secure, reliable and scalable technology. And yes, NOK is one of a few companies that that has these capabilities with its systems.Another important factor: The US-China trade standoff. This means that the US will block out a fierce competitor -- mainly, China's Huawei.And finally, Nokia has a valuable patent portfolio. On the earnings call, CEO Rajeev Suri remarked that there will be continued strength from the portfolio that should provide "considerable monetization opportunities." Bottom Line on NOK StockThe move to 5G has certainly not been without its challenges -- and this should be no surprise. The technology is complicated and requires dealing with onerous rules and requirements. But as for NOK, management is still optimistic and believes that the second half of the year will see a pick-up in the business. There is also about 200 million in euros of revenues that are expected to be recognized during this period of time. * 10 Retirement Stocks That Won't Wilt in a Bear Market Something else: NOK stock is quite cheap at current levels, with the forward price-to-earnings multiple at 12 or so. Oh, and the dividend yield is an attractive 4.13%. This is among one of the highest in the tech sector.In other words, NOK stock does look like an interesting value play on the 5G opportunity.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post Nokia Stock Looks Like an interesting Contrarian Play Here appeared first on InvestorPlace.
When looking for the best artificial intelligence stocks to buy, investors should expand their search to unexpected fields. Salesforce.com and Trade Desk are among AI stocks on IBD's radar.
In his first "Executive Decision" segment of Tuesday night's Mad Money program, Jim Cramer checked in with Shantanu Narayen, president and CEO at Adobe Inc. Narayen said that Adobe's mission is still to help companies create content, attract customers and transact with them. When asked about their exposure to China and tariffs, Narayen noted that Adobe has minimal exposure to both and is benefiting more from the tailwinds of people everywhere creating more content than ever.
The Impact Global Venture Summit is using government to attract Silicon Valley and corporate investors to Sacramento.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
If you put $1,000 into Adobe (NASDAQ:ADBE) at the end of 2011, today that Adobe stock would be worth $9,849, a compound annualized return of 35.7%.Source: Shutterstock So far in 2019, ADBE stock is up 23% year to date through May 10. If Adobe can meet its average annual return over the past seven-and-a-half years, it will hit $300 with a little room to spare. Given the stock's momentum, it seems like an absolute certainty. However, others would argue that its valuation is far too stretched, suggesting $250 is a more likely scenario for the end of the year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Trade War Stocks With a Lot of Risk Here's an argument for both prices. Adobe Is a $300 StockAdobe stock has taken in the trade war and the Chinese recent retaliation. The Chinese, in a tit-for-tat move, added tariffs to $60 billion in American exports to China, scaring the heck out of investors and sending the major indexes down by more than 2%. President Trump is playing the ultimate game of chicken. However, cooler heads will prevail because no one wants a protracted trade war between the world's two largest economies. When that day comes, and the trade negotiators deliver a workable deal, Adobe's move higher should resume to $300. A big reason why Adobe stock will continue moving higher has very little to do with a trade deal and everything to its business functioning at a very high level of efficiency. At the end of April, Adobe's stock got a ratings upgrade from Morgan Stanley analyst Keith Weiss who upped it from equal weight to overweight while also increasing his 12-month price target by 21% to $340, providing investors with 26% upside from current prices. "Adobe should sustain a 20%+ EPS compound annual growth rate over the next three years, even if digital-media growth begins to wane, given improving segment profitability and ramping digital-experience growth," Weiss wrote in a note to clients.He's not the only analyst who likes Adobe. A total of 19 analysts have an overweight or buy rating on the stock with 12 analysts giving it a hold rating. None of the 31 analysts covering it gives it an underweight or sell rating. Of course, when you're growing earnings per share by 20% or more a year, it's easy to see why no analysts are negative about the company.As for target prices, Weiss's is highest at $340 with the average just under $300 at $296.68. From where analysts are sitting, Adobe looks primed to hit $300 by the end of 2019. Adobe Stock Is Only Worth $250In March, Adobe reported its first-quarter results and they were very strong with its digital media segment up 22% year over year while its digital experience segment increased revenues by 34% on the back of two acquisitions; Marketo for $4.7 billion and Magento for $1.6 billion.In fiscal 2019, Adobe expects its digital media segment's revenues to grow by 20% while its digital experience segment should see revenues grow by 34%, again thanks in large part to its two acquisitions. Most important, it expects non-GAAP earnings per share in fiscal 2019 to grow by 15% from $6.76 in 2018 to $7.80 in 2019. While the $7.80 figure is likely a conservative estimate (it increased guidance from $7.75 after the first quarter) earnings have got to hit $8.11 a share or higher to meet Weiss' three-year grow rate mentioned above. Considering both its price-to-sales and price-to-cash flow ratios are higher than its peers, and its five-year historical average, any growth below 20% will have to be viewed by investors as a failure to deliver. While I agree with InvestorPlace contributor Tezcan Gecgil that Adobe is a good long-term investment given the strength of its cloud-based products. Furthermore, it probably would make an attractive acquisition for Microsoft (NASDAQ:MSFT).However, valuation in a volatile market remains a major sticking point to a higher stock price. More bad news on the trade front could put tech investors in an extended selling mood making $250 a real possibility. The Bottom Line on Adobe StockIt's important to remember that Adobe was trading below $210 as recently as December. Therefore, it's more than possible that its share price will drop to $250 or even lower. Long-term, like my colleague, I believe Adobe stock is a winner. I would wait to see how this trade war plays out before buying. If you already own, I'd continue to hold, buying more in the $250s. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Trade War Stocks With a Lot of Risk * 7 Bond ETFs to Buy * 10 Stocks That Could Squeeze Short Sellers, Including CGC Compare Brokers The post Even Without the Trade War, Adobe Stock Won't See $300 Anytime Soon appeared first on InvestorPlace.
Investors can expect more days like today if the trade war rhetoric stays quiet, Jim Cramer told his Mad Money viewers Tuesday. After Monday's market meltdown, trading today seemed to return to normal, as Wall Street realized tariffs may not be as bad as everyone feared. Most of China's latest tariffs were on agricultural products, Cramer noted, but America has a long history of subsidizing farmers, so this time will likely be no different.