|Bid||98.03 x 900|
|Ask||98.55 x 1000|
|Day's Range||96.35 - 104.87|
|52 Week Range||41.88 - 141.85|
|Beta (3Y Monthly)||0.98|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||142.63|
Call it risk-off Friday. With huge uncertainty heading into the weekend on fronts from Brexit to the impeachment process to Syria, investors are dumping high-valuation tech shares.
In the September quarter, Netflix sales rose 30% to $5.2 billion. The company's sales were marginally below the estimates of $5.3 billion.
TheStreet warned in April that pricey cloud stocks would fall to earth, and it's happened. But they may have lower still to go as investors turn away from pricey high-growth tech names.
International investment banker Needham & Company is home to a suite of Wall Street’s best analysts. They monitor the markets, giving Needham’s clients the benefit of their experience and insight. In the past week, three of Needham’s analysts have issued reports on a series of exciting high-upside tech stocks.We’ve looked up all three in TipRanks’ Stock Screener, and found out just what put these stocks on Needham’s radar. The end results can be summed up simply: all three stocks show tremendous potential for near- to mid-term growth. Let’s take a close look at them, and see exactly why they are compelling opportunities.Uber Technologies (UBER)We’ll start with Uber, the headline-grabbing ride-share app that is turning the taxi industry upside down. Based in San Francisco, home to many of the tech world’s innovators, Uber boasts operations in more than 780 cities world-wide. The app has more than 110 million active users, and has taken a 69% market share in the individual passenger transport niche in the United States. The ride share app quick to take advantage of new roles – in addition to its hefty transport market share, Uber commands 25% market share in the food delivery niche. The company’s rapid growth – it has achieved all of this in just 10 years – has been a magnet for investors and pushed the market cap past $54 billion.Needham’s Brad Eriskson has reviewed UBER, and reiterated his buy rating on the stock along with a $50 price target, indicating his confidence in over 50% upside. (To watch Eriskson's track record, click here)Eriskson is forthright about recent problems the company has faced, saying simply, “We acknowledge further bookings deceleration will make near-term stock appreciation challenging…” He goes on to say that he believes these headwinds are starting to fade and that the stock will begin accelerating again in the mi-term outlook.Getting to details, Erickson writes, “We view UBER as one of the best mega-cap value-creation opportunities in our universe given transportation's massive $5 trillion end market… We believe consumers have only just begun to use shared mobility to buy back time during their busy lives. In the U.S. and Europe alone, we estimate that the annual value of commuting is $829 billion and $1,627 billion, respectively, a rising portion of which we believe shared mobility can capture… our analysis of the value of people's time in the two regions based on stratified income levels suggests Uber is a compelling option for large portions of the population, which makes growth appear more sustainable than investors expect.”In line with Eriskson's bullish stance, UBER stock holds a Strong Buy from the analyst consensus, based on 19 "buy" and 4 "hold" ratings assigned in the past three months. Importantly, the average price target of $52.14 implies over 60% upside from the current share price of $31.87. (See Uber stock analysis on TipRanks)Medallia (MDLA)Our second hot tech stock from Needham is Medallia. Based in San Francisco, like Uber above, Medallia has offices in major global hubs such as London, Buenos Aires, New York, and Tel Aviv. The company inhabits the Software-as-a-Service (SaaS) space of the cloud universe, offering business customers an advanced capability in monitoring social, mobile, contact center, and Web feedback. Medallia’s software monitors such contacts in real-time, and provides analysis to customer satisfaction and loyalty teams, allowing management to fine-tune goals and targets.Medallia went public just this past July, and since then has gained 32% since opening on the markets. The company’s market cap is up to $3.5 billion, and MDLA caught the attention of Needham’s 5-star analyst Scott Berg right away. Back in August, after three straight bull sessions, Berg initiated coverage of this stock with a $45 price target, saying, “…the company’s profitable long-term model justifies a premium valuation.” (To watch Berg's track record, click here)Since then, Berg remains bullish. He met earlier this week during investor meetings with CEO Roxanne Oulman, and came out with an optimistic view of the company’s future, writing, “Our meetings support our thesis that given MDLA's new management team's strong operational background the company can re-accelerate growth of its strong product platform… As a result, we look for durable 25% - 30% annual revenue growth.”Getting down to details, Berg points out a series of factors that will boost Medallia’s niche performance and stock share value in the mid- to long-term. He writes, “With current enterprise customers only utilizing an average of two modules versus a portfolio containing 11 today… opportunity to cross-sell customers could accelerate… Medallia's acquisition strategy is focused on acquiring talent and technology to maintain the company's competitive advantage… Management highlighted a measured approach to investments in sales and product to deliver a long-term balance of growth + profitability.”At the bottom line, Berg says that, with MDLA, patient investors are wise investors. He sums up the case by saying, “We believe investors with enough patience to let management execute on GTM and product investments over the next 12-18 months are likely to benefit from re-accelerating revenue growth and a solid land and expand model.”Overall, analysts are equally bullish on this stock. MDLA holds a Strong Buy from the consensus, with 10 buys against just 2 holds. The average price target is $46, slightly higher than Berg’s, and suggests an upside potential of 67% from the current trading value of $27.87. (See Medallia stock analysis on TipRanks)Okta, Inc. (OKTA)Earlier this year, this cloud-based user authentication and identity control software company hit the 100 million user mark, an important milestone that justifies the nearly $13 billion market cap. OKTA trades robustly, and has quintupled in value since its IPO in May of 2017.Needham’s Alex Henderson, another 5-star analyst, has covered OKTA regularly. Back in August, he wrote that this stock is a compelling buy, with strong prospects for growth, saying, “Expect 31-34% growth for the October quarter, which leaves plenty of room for upside.” (To watch Henderson's track record, click here)Events since then have borne him out. In the Q2 report, released in August, Okta revealed a 49% sales jump, with total sales of $141 million; both numbers were well in excess of the company’s previous guidance. Over 1,200 companies have signed contracts worth more than $100,000, and the top 25 contracts doubled in size from the year previously. Okta’s financials also improved, as the cash burn fell from $5 million to $1 million.We can leave the bottom line to Alex Henderson, who attended an investor day earlier this month. He met with the company’s COO/Founder Frederic Kerrest, and wrote afterward, “We come away from an NDR with OKTA COO/Founder and Okta's analyst event with renewed conviction that Okta has become the de facto standard in Identity. Identity is crucial to Cloud Direct Security and Zero Trust. This is a massive market. It’s several massive markets. Okta continues to innovate delivering roughly 40 software upgrades annually. According to management, Okta is seeing no impact from slowing macro conditions and may even be accelerating. The company expects to accelerate hiring from the 40% rate in the first half and still produce operating leverage. While investors have become increasingly concerned about high growth valuations, we remain steadfast. This is one of our top investment picks in Security.”Henderson places a $154 price target on OKTA shares, suggesting he sees room for an upside of 43%. Shares are selling for $107, and the average price target, $141.27, indicates a 32% upside potential. The analyst consensus on OKTA is a Strong Buy, with 9 "buy" and 3 "hold" ratings (See Okta stock analysis on TipRanks)
High-growth tech firms have lost significant market value in the first half of October. TTD, NOW, OKTA, and TWLO are all trading lower today.
Workday Inc. shares are off more than 11% in Wednesday morning trading and pacing the declining software sector after the company held its user conference and analyst day. Several analysts flagged the company's commentary on its human-capital management product, which Workday expects to end the year with 20% growth, marking a slowdown. "Financials will need to continue to grow at healthy rates to offset this," wrote Jefferies analyst Brent Thill, though he said the attachment rate of financials to the core product is relatively low, suggesting opportunity. While Workday also announced some new products, Macquarie analyst Sarah Hindlian questioned the revenue potential for some of them. "For example, blockchain-enabled Workday Credentials allows verification of credentials such as employment and educational history," she wrote. "We think this is likely a limited market opportunity." Another issue for Workday is that its chief executive commented that the company has "definitely seen some delays" in deal activity, but Workday doesn't expect these to impact the business or result in cancellations. Other software stocks are getting hit in Wednesday trading as well, including Slack Technologies Inc. , which was the subject of a price-target cut at Morgan Stanley, and Adobe Systems Inc. , which received a Citi Research downgrade. Shares of Okta Inc. , Splunk Inc. , Zoom Video Communications Inc. , and Atlassian Corp. PLC are also down. The iShares Expanded Tech-Software ETF is off 2.3%, while the S&P 500 has lost 0.1%.
Seemingly in recent years, technology-related initial public offerings fall into two camps: those who perform stunningly well, and those that crumble badly. Identity management specialist Okta (NASDAQ:OKTA) definitely belongs in the former category. In April of 2017, OKTA stock started off with an IPO price of $17. Today, shares are a little bit shy of $116.Source: Michael Vi / Shutterstock.com Despite a general slowdown that started in August of this year and was exacerbated last month, Okta Inc stock has nevertheless enjoyed an overall brilliant performance. Since this January's opening price, OKTA has gained over 89% in the markets. And in the current month, shares are up nearly 18%.It's one of the few bright spots in an environment mostly focused on the unpredictable U.S.-China trade war negotiations. Further, the narrative behind this conflict helps bolster the argument for OKTA stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile the headlines focus on the economic aspect of the trade war, what gets lost is how we got here. Unbalanced trade deficits, as well as China's stealing of intellectual property (IP) from American tech firms like Micron Technology (NASDAQ:MU), have long dogged prior administrations. Contrary to the traditional strategy, though, President Donald Trump has thrown diplomacy out the window, instead opting for geopolitical hardball. * 7 Tech Stocks You Should Avoid Now But underlining this nasty and ongoing dispute is the need for digital security. OKTA specializes in identity management, which involves much more than making sure only the right people can access specific information. Rather, the company recognizes that we live in a digitally interconnected world. Their technologies facilitate collaboration while still protecting IP and other valuable assets.In the past, this has driven Okta Inc stock. But is there enough room today for a repeat performance? Okta Stock Is Interesting, but Not at This PriceOver the past few years, we've seen tech upstarts like Twilio (NYSE:TWLO) impose an outsized influence relative to their size. OKTA stock operates under a similar principle.Undoubtedly, one of the top attributes for the company is its scalability. Rather than an individual company investing in its own security protocol, it often makes economic sense to outsource this function. As a specialist, OKTA can provide cost-effective solutions quickly, thus driving the case for Okta stock.At the same time, being a specialist has some drawbacks. Because these types of companies operate in a relatively narrow focus, they lack robust revenue diversity. If growth slows down in a key market, it could lever a larger-than-normal impact. And that's what I believe happened with OKTA stock in recent months.In August, management released its earnings result for the second quarter. On paper, the company beat both per-share profitability and revenue expectations. However, Okta stock slipped on the announcement, and tumbled days later.Sure, the company produced some impressive numbers. But on a longer-term timeframe, those figures are becoming less impressive. Click to EnlargeFor instance, in Q4 2016, OKTA rang up $49.3 million in sales, which represented nearly 82% growth year-over-year. In Q4 2017, the company delivered revenue of $77 million, but a growth rate of "only" 56%. One year later, the sales tally increased to $115.5 million, but the growth rate declined again to just under 50%.In the Q2 2019 report, OKTA drove home $140.5 million, while sales growth slipped to 48.5%. Of course, all companies experience growth declines as they progress nominally. But with OKTA stock having gained so much, investors wanted to see more.They didn't get it, which resulted in volatility for shares. Low Barrier to EntryAnother potential risk factor for Okta Inc stock is the relatively low barrier to entry for the target industry.Ironically, the attribute that makes OKTA stock so compelling - effective security solutions for corporations - is what makes it vulnerable to competition. Interestingly, management has invested funds into blockchain technology to bolster its security offerings.Currently, few players can do identity management quite like Okta Inc. But tellingly, the blockchain is an open source innovation. Thus, another upstart with a better way of doing business could end up disrupting this space.And it's almost inevitable that identity management will attract more competitors. Looking at OKTA's cost of goods sold, they're very low relative to top-line sales. With quarterly gross margins consistently coming in above 70%, this is not the most capital-intensive industry.That's not to say that you should ignore OKTA stock indefinitely. But at the current price, I think the risks outweigh the rewards.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Waiting It Out Remains the Best Call for OKTA Stock appeared first on InvestorPlace.
The stock market turned slightly lower in afternoon trading Monday as Wall Street weighed the latest developments in the China trade war.
Cloud-based identity security company Okta were rising on heavy volume Monday after analysts at Citi initiated coverage of the stock with a buy rating and $150 price target. The price target represents a potential 29% upside from the stock's closing price Friday of $116.24. Analyst Walter Pritchard noted that identity management spending is "up for grabs," giving Okta a chance to grab market share.
Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to […]
Okta is rolling out a new slate of access management and security offerings. Okta CEO Todd McKinnon discusses the latest developments with TheStreet.
Shares of Okta (NASDAQ:OKTA) have been under severe pressure, as high-growth stocks are getting hammered. Whether good, bad or mediocre, these stocks are being tossed out the window. Okta stock is in that group, as shares fell 34% from peak to trough in just two months.Source: Michael Vi / Shutterstock.com It's got some investors looking for an opportunity in the name, while others are waiting for the next shoe to drop. Unfortunately, the main driver for the growth stock group may be the overall market.The S&P 500, Nasdaq and Dow Jones are no more than 5% off their highs. Should they see even moderate selling pressure -- say, down 7% to 10% from their highs -- individual stocks will likely take another beating.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the flip side, should the major indices push back to new highs, investors will likely feel confident enough to circle back to these names now that most of them are down 20% or more. Valuing Okta StockAfter the recent decline, we've started to see some life in this group once again. Shopify (NASDAQ:SHOP) broke below $300, then reclaimed it, rallying to around $50 per share from its lows. Roku (NASDAQ:ROKU) jumped almost 10% on Wednesday after an analyst upgrade. After breaching the 200-day moving average, Okta stock has recovered nicely as well, up about 25% from the lows. * 10 Super Boring Stocks to Buy With Super Safe Returns So, has this group bottomed? Perhaps. But I wouldn't be surprised by a retest or a near-retest of the recent lows.When we see a massive rally like we did in Okta Inc stock -- a triple from the fourth-quarter lows -- followed by a catastrophic unwind, these stocks need time to build bases. I can't say confidently whether the latest shakeout has been enough or not. However, my biggest issue with OKTA is the valuation.Last quarter, OKTA delivered a beat across the board. Earnings, revenue and management's outlook for next quarter and the full year were impressive. As such, full-year expectations now call for 41% revenue growth this year to $562.86 million.While the growth rate is impressive, we're still talking about a stock with a $14.1 billion market cap. That's 25-times current sales!Say estimates of 34% revenue growth next year are too conservative, and Okta again grows revenue past 40%, say to $800 million. That's great, but we're still talking about 17.6-times forward sales at present value.And remember, I'm no perma-bear on Okta. This was one of my favorite mid-cap stocks earlier this year. This group has performed incredibly well, even considering the big correction.On the plus side, OKTA recently turned free cash flow (FCF) positive, while gross margins and gross profit continue to surge. On the downside, it's not yet profitable and FCF is barely more than breakeven. Trading OKTA SharesOkta stock will rally eventually, but that doesn't calm investors' worries about the valuation. The question then becomes, when will names like Okta, Alteryx (NASDAQ:AYX), Veeva Systems (NASDAQ:VEEV), Shopify and others come to more realistic levels?For instance, when will the price-to-sales ratios drop from the mid-20s to the teens? Not that that's cheap, but it's at least palatable. For Okta stock, that would drop the stock about 30% from current levels, based on fiscal 2020 (this year's) sales. That would put shares more than 10 points below the September low, landing it down near $82.50. Click to EnlargeCurrently, shares are trading just under $120, as the 50-day moving average and 78.6% retracement keep a lid on Okta stock. Over $120 and OKTA may accelerate higher.If this level holds shares in check, bulls need to see the 200-day moving average and the 61.8% retracement hold as support. If they fail, the September low near $93.50 is on the table.So, is Okta Inc stock safe to buy yet?For me, I like to see huge washouts in high-growth names once they've lost momentum. Specifically, I look for reductions exceeding 40%, like we've now seen in Roku. Specifically, with Okta, I would really like to see the stock decline more before initiating it as more than a trade.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Is Okta Stock Too Dangerous to Own? appeared first on InvestorPlace.
Okta rolled out a slate of new cybersecurity, access management and authentication tools with major enterprises in mind. CEO Todd McKinnon talks to TheStreet about why Okta's laser-focused on the largest organizations in the world.
Okta, Inc. (OKTA), the leading independent provider of identity for the enterprise, today at Okta Showcase announced DynamicScale, a new high capacity customer identity offering that enables transformative scale for the largest businesses and the most highly-trafficked apps and sites on the internet, supporting traffic bursts and extended use of up to 500,000 authentications per minute. This industry-leading infrastructure technology also gives DevOps and engineering teams the flexibility to test their applications with massive volumes of authentication, authorization, and user management traffic. With these enhancements, customers can ensure the performance and reliability of their apps under peak workloads and within the entire spectrum of identity use cases, whether it be a new product release, a viral marketing campaign, or a major shopping weekend.
New innovative approach to security turns targets into first responders, enabling administrators and end users to make informed security decisions, faster
Okta, Inc. (OKTA), the leading independent provider of identity for the enterprise, today announced a strategic partnership with Atlassian, a leading provider of team collaboration and productivity software, to accelerate organizations’ move to the cloud. In order to compete with today’s disruptors, organizations of every size and industry are investing in cloud technologies to increase workforce productivity and improve customer engagement.
It's been about four years since Square (NYSE:SQ) came public. At the time of the deal, there was mostly a chilly reception from investors. Square stock priced at $9, which was below the range of $11 and $13. The valuation was actually lower than the company's prior round of venture funding.Source: Shutterstock Interestingly, recently SQ stock is undergoing a similar period of skepticism (which, by the way, has come after a powerful bull move for the past couple years). During the past few months, the shares have gone from $82 to $59. The result is that the year-to-date return on Square stock is only about 7%. In fact, for the past 12 months, the shares have sustained a 39% loss.It's true that many tech stocks, especially the high-fliers, have come under pressure as well. Just look at the major drops in companies like Zoom Video Communications (NASDAQ:ZM) and Okta (NASDAQ:OKTA).InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut hey, when it comes to tech stocks, there are periodic swoons. Yet they have been temporary - and yes, good buying opportunities. * 7 Important IPO Stocks to Watch for the Long Run So might this mean that SQ stock is a good opportunity right now? Well, there's little doubt that the company has a solid platform and is a leader in the fast-growing payments market.All this has come from a fairly simple application, launched in 2009, that involved a credit card reader that connected to an Apple (NASDAQ:AAPL) smartphone or Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) Android device.From there, CEO Jack Dorsey was aggressive in expanding the platform into a myriad of categories like payroll, gift cards, loyalty programs, marketing services, eCommerce, business loans and so on. The result is that Square has become a very sticky service.Although, the move into loans may be having the most impact. "The company is getting a piece of the origination fee, which is pure profit," said Chris Ligan, who is the VP of Acquisitions for point-of-sale credit card processor Auric. In all, SQ has loaned customers about $5 billion. The Market and Square StockThe market opportunity for payments is enormous - estimated at over $100 trillion on a global basis. But this means there is much competition coming into the segment. Of course, there are startups popping up as the venture capital markets are awash with huge amounts of money.But even traditional financial institutions are leveraging their own platforms and customer bases to get a piece of the opportunity. Consider that Bank of America (NYSE:BAC), BB&T (NYSE:BBT), Capital One (NYSE:COF), JPMorgan (NYSE:JPM), PNC Bank (NYSE:PNC), US Bank (NYSE:USB) and Wells Fargo (NYSE:WFC) are the backers of a payments app, called Zelle, which has been getting lots of traction."What ends up happening is as concepts get commoditized, it is tough to remain relevant," said Zafin executive vice president of global partner growth and sales strategy, Meenaz Sunderji. Bottom Line on Square StockEven with the drop-off in the share price, the valuation on SQ stock is still far from cheap. Consider that the forward price-to-earnings multiple is about 54X. In other words, Wall Street is still expecting quite a bit of growth on the top line.But this could be tough to maintain. Besides the emerging competition and the risks of commoditization, SQ also is vulnerable to a slowdown in the U.S. economy (and yes, the recent data does look ominous). Let's face it, the company's customer base is primarily made up of small businesses, and they usually get hit the hardest when the economy goes into recession.So in light of all this, it's probably best to avoid Square stock for now.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. 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 * 2 Toxic Pot Stocks You Should Avoid * 7 Important IPO Stocks to Watch for the Long Run * 7 High Volatility Stocks to Buy as the Market Rebounds * 7 Dow Jones Industrial Average Stocks to Sell The post Things Bleak for Square Stock in a Slowing Economy appeared first on InvestorPlace.
Four top software stocks on seasoned hedge fund manager Jim Roppel's watchlist include Atlassian stock, Okta stock, ServiceNow stock and DocuSign stock.
Cyberattacks have become increasingly common in business today - proprietary information as well as confidential customer information constantly being at risk of attack.