|Bid||126.01 x 800|
|Ask||130.20 x 900|
|Day's Range||127.02 - 132.11|
|52 Week Range||70.44 - 141.85|
|Beta (5Y Monthly)||0.97|
|PE Ratio (TTM)||N/A|
|Earnings Date||Dec 04, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||141.18|
Look for cybersecurity stocks with "Zero Trust" pedigrees such as Okta, CyberArk Software and Akamai Technologies to get a boost at the RSA conference, says an analyst with Morgan Stanley.
A lot of stocks had really good years in 2019. That's why the S&P 500 posted its best annual return since 2013. But, one enterprise software stock which had a particularly strong 2019 was cloud security company Okta (NASDAQ:OKTA).Source: Sundry Photography / Shutterstock.com In many ways, Okta was the stock of the year in the enterprise software world. OKTA surged nearly 80% higher last year, as the company pioneered a new method of identity-based security which companies everywhere found highly attractive. Hundreds of companies signed up for this novel security platform, called Identity Cloud. Revenues and margins stormed higher. So did OKTA stock.Now, the 2019 enterprise software stock of the year looks positioned to have a big 2020, too.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSpecifically, three big catalysts will propel OKTA stock meaningfully higher next year. First, revenue growth rates, which have been slowing throughout 2019, will stabilize in 2020. Second, profit margins, which have been improving throughout 2019, will continue to improve in 2020, and potentially even sneak into positive territory by year end. Third, Okta's valuation, which is discounted relative to the company's long-term profit growth potential, will meaningfully expand.All together then, Okta stock could be the enterprise software stock of the year again in 2020. Okta's Fundamentals Are ImprovingThe big idea behind the 2020 bull thesis in OKTA stock is that, over the course of the next 12 months, Okta's core fundamentals will meaningfully improve, laying the foundation for share price gains. * 10 2019 Winners That Will Be 2020 Losers These improvements break down into two parts -- revenue growth stabilization and continued progress toward profitability. On the first part, Okta's revenue growth rates have slowed significantly in 2019, from 50% at the start of the year to 35% exiting the year. With revenue growth rates now down near 30%, however, the laps are getting much easier for Okta, so there shouldn't be much more revenue compression in 2020, assuming the company's core tailwinds remain favorable.They should. Okta sells identity-based, cloud security solutions to enterprises across the globe. In 2019, corporate spending on such items dropped because of escalating geopolitical uncertainty. Now, that uncertainty is fading from the scene thanks to easing trade tensions. Corporate spending on things like cloud security should rebound in 2020. This rebound should help stabilize Okta's revenue growth rates.On the second part, Okta's gross profit margins have been improving all year long. But, operating losses have not been narrowing, since the company is spending an arm and a leg to grow. This robust expense growth should moderate in 2020, as Okta gets bigger, spends less on marketing and benefits more from macroeconomic tailwinds. As it does, Okta will make more meaningful progress toward profitability. Considering fourth-quarter operating loss is projected to be just $10 million, it is fairly likely that by the second half of 2020, Okta peeks its head into profitable territory.Broadly, this combination of revenue growth stabilization and strong progress towards profitability should drive OKTA stock higher in 2020. Okta Stock Is UndervaluedBy my numbers, this 2019 enterprise software stock of the year is materially undervalued at current levels.Okta is growing revenues at a 30%-plus clip. The company will sustain 20%-plus revenue growth over the next several years for a few reasons. First, the amount of data and operations pivoting into the cloud is growing exponentially, and the amount of money corporations will spend on cloud security to protect all that data and those operations will grow exponentially, too. Second, identity-based cloud security solutions will attract the lion's share of that cloud security spending, because they optimize for work-flow flexibility. Third, Okta offers the best-in-class identity-based cloud security solution out there, so it will win big as adoption of identity-based cloud security solutions rises.Meanwhile, Okta is an 80% gross margin business with a huge operating expense rate. That high gross margin will stay high because this is an enterprise software business with strong pricing power and very little cost of production. That big opex rate will drop over time because expense growth will moderate as new client growth slows, and as spending per client rises. This combination ultimately implies huge room for margin expansion in the long run.Okta reasonably projects as a 20%-plus revenue grower for a lot longer with huge margin upside potential. Looking out long term, my modeling pegs Okta's calendar 2030 earnings potential at $11 per share. Based on an application software sector average 35-times forward earnings multiple, that implies a 2029 price target for OKTA stock of $385. Discounted back by 10% per year, that equates to a calendar 2020 price target of over $160.OKTA stock presently trades hands around $117. That's well below $160. Thus, this 2019 stock of the year could turn into a 2020 stock of the year, too. Bottom Line on OKTA StockOkta stock had a big 2019, rising nearly 80%. Shares could have another big year in 2020, as favorable fundamentals converge on what has become a relatively discounted valuation.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 2019 Winners That Will Be 2020 Losers * 5-Year Returns for 5 Dow Jones Stocks Entering 2020 * 5 Semiconductor Stocks to Buy for Big Gains In 2020 The post Okta Stock Looks Due for Another Big Year appeared first on InvestorPlace.
U.S. stocks are not slowing down as 2020 nears. All three broad market indices once again reached new highs on Thursday. The S&P 500 has gained more than 29% so far this year. The NASDAQ Composite cleared 9,000 for the first time on Thursday.Source: Shutterstock With the geopolitical situation calm and impeachment apparently stalled out, there's seemingly little resistance ahead at the moment. That's not the case, however, for Friday's big stock charts. * 7 Stocks to Buy to Get 2020 Started the Right Way In fact, resistance is the theme of these big stock charts. One of these names already has faltered and is trying to rebound. The other two are looking to re-take past highs. But the common thread is that all three of these stocks are looking for a breakout in the midst of a broad market that continues to rise.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Wynn Resorts (WYNN)Source: Provided by Finviz When we called out Wynn Resorts (NASDAQ:WYNN) in 3 Big Stock Charts at the beginning of November, the stock looked set to stall out. That turned out to be the case, as shares sputtered for several weeks. But two pieces of positive news have changed the outlook -- and the WYNN stock chart: * Wynn shares first jumped on Dec. 12, as China announced plans to make Macau a key financial center. WYNN stock gained 9.5% on that news, as investors saw the news as driving demand for Wynn properties in that Chinese enclave. Six days later, the central government delivered more good news, increasing the daily limit on remittances from the mainland, and WYNN again gapped up. * On their own, neither of those developments seem to move the needle. But they add to the sense that Chinese leaders see Macau in an increasingly positive light amid protests in Hong Kong. Central government policies have impacted gaming revenue and stocks of casino operators in the region; anti-corruption measures interrupted growth earlier this decade, and WYNN still trades 40% below early 2014 highs. * The twin jumps allowed WYNN to break out of a usually bearish descending triangle. Moving averages have been easily cleared. And volume has been relatively solid during this rally. The question now is if WYNN can trade clear of $140, which acted as resistance in July. From there, $150 is in the next key level before Wynn stock reaches an 18-month high. * Click to Enlarge Source: Provided by Finviz For market bulls, a bet on a breakout seems wise. The resolution of the trade war, assuming it holds, obviously adds to the bullish sentiment toward the stock. Valuation is reasonable. As long as the external environment holds, WYNN has a real chance to break out. The same is true for rival Las Vegas Sands (NYSE:LVS), an intriguing choice for income investors bullish on the region. Veeva Systems (VEEV)Source: Provided by Finviz Veeva Systems (NYSE:VEEV) has been left out of the market's rally for over five months now. The stock has challenged $170 on a pair of occasions, and quickly receded each time. But the second of Friday's big stock charts shows a name back at support. At these levels, VEEV stock looks interesting -- even if it admittedly still looks expensive: * $140 has held as support on multiple occasions over the past few months, which suggests potential for a bounce. There are some technical concerns, however. There's a modest descending triangle pattern underway. And VEEV stock saw a so-called "death cross" earlier this month, with the 50-day moving average falling beneath the 200-day. * Still, there's an intriguing case here. Veeva has established a dominant market position in life sciences software. Growth has been torrid for years now. And while VEEV stock is expensive at 56x forward earnings, it's not terribly so in the context of high-growth software names. On an earnings basis, VEEV trades roughly in line with Salesforce (NYSE:CRM). Still-unprofitable SaaS (software-as-a-service) names like Okta (NASDAQ:OKTA) and Datadog (NASDAQ:DDOG) trade at a premium relative to revenue. * More broadly, valuation hasn't been much of an issue in the SaaS (software-as-a-service) space. It's not entirely clear why it has been for VEEV stock in the second half of 2019. It's not as if there has been a downside catalyst: Veeva delivered another beat-and-raise quarter late last month. Historically, that had been enough for upside. It may well be again in 2020. Zynga (ZNGA)Source: Provided by Finviz Zynga (NASDAQ:ZNGA) stock touched a seven-year high this summer. But, since then, the third of our big stock charts shows clear resistance. The question is whether ZNGA finally can break through: * There's some reason to think that it can. An ascending triangle pattern usually leans bullish. The stock has cleared near-term moving averages and continues to grind higher. Resistance has been stout, but ZNGA stock looks like it's mounting a legitimate challenge. * As with VEEV, there's a relative valuation case for the stock as well. Zynga stock isn't necessarily cheap at 24x forward earnings, particularly given that analysts see flat bottom-line performance in 2020. But a large cash hoard helps the cause, and ZNGA stock certainly is cheap by tech standards. * Put another way, there simply aren't a lot of stocks that offer both value and the potential for growth. Zynga has both, given its $1.4 billion in cash targeted for acquisitions. The risk here is that the company's successful turnaround largely has run its course. Investors in this market may be willing to bet otherwise.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy to Get 2020 Started the Right Way * 10 Best ETFs for 2020: The Competition Is Stacked Full of Potential * 4 Gold Stocks to Buy as the Yellow Metal Surges The post 3 Big Stock Charts for Friday: Wynn Resorts, Veeva Systems, and Zynga appeared first on InvestorPlace.
Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback […]
It has definitely been a stellar year for enterprise cloud stocks. Just look at companies like Anaplan (NYSE:PLAN), Okta (NASDAQ:OKTA) and Docusign (NASDAQ:DOCU). They have all posted over 80% returns.Source: Shutterstock But the news has not been as good for old-line enterprise companies, especially those that rely heavily on on-premises solutions. One example is VMware (NYSE:VMW) stock. Consider that the return is a measly 10.6%. * 7 Safe Dividend Stocks for Investors to Buy Right Now Founded in 1998, VMware is the pioneer of virtualization for the x86 architecture, allowing for much better performance from existing machines. But with the secular trend towards the cloud, the business has come under pressure. For the most part, there has been a move away from traditional virtualization to the use of containers that hold apps, configurations and settings.InvestorPlace - Stock Market News, Stock Advice & Trading TipsInterestingly enough, the origins of this technology go to Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), which needed to find ways to scale their cloud applications. The company's engineers developed a framework, called Kubernetes, that allows for this. About five years ago, Google open sourced this, making the technology a standard.Now while containers and Kubernetes are clear threats to VMW stock, it's important to keep in mind that the company is not sitting back. That is, there has been a big push for M&A, including about $5 billion in recent deals for Pivotal Software (NYSE:PVTL) and Carbon Black.So why these companies? Well, let's take a look: Carbon BlackCarbon Black, which is a cybersecurity company, came public in May 2018 at $19 a share. VMW agreed to buy the company for $26 per share.For the most part, this deal is about expanding the footprint. No doubt, cybersecurity is a top-of-mind priority for companies. The risks keep increasing as new technologies like cloud and mobile penetrate the enterprise. Regarding Carbon Black, its technology is targeted on endpoints, whether physical or virtual where sensitive data is located. The company has also been leveraging next-generation approaches like AI (Artificial Intelligence).With the deal, VMware will launch a new Security Business Unit. And it should represent a nice avenue for growth and cross-selling.Carbon Black has over 5,600 customers and reported a 19% increase in revenues during the latest quarter to $60.9 million. Although, the cloud revenues jumped by 68% to $22.9 million. Pivotal SoftwarePivotal Software is another recent IPO that came out in April 2018. The initial offering price was $15, which is what VMware ultimately agreed to pay for the company.Pivotal Software operates a software platform that helps with the building, deployment and operation of cloud-native and legacy applications. But the company has also been leveraging its technology with Kubernetes. Pivotal Software has launched an alpha version of its Pivotal Application Service (PAS) for this. Then there was a partnership with VMware last year for the Pivotal Container Service, which allows for scaling Kubernetes.True, the growth rate for Pivotal is not too impressive, at 17% during the latest quarter. But like Carbon Black, the cloud business is growing quickly, at 38%. Consider that Pivotal believes its market opportunity is $50 billion. Bottom Line VMW StockWhile VMware's M&A strategy is risky, it's the best way to transition to the cloud. What's more, the dealmaking will likely continue. As seen with other mature tech companies like Adobe (NASDAQ:ADBE) and Microsoft (NASDAQ:MSFT), the transformation process can result in strong gains for shareholders.Oh, and for VMW stock, the valuation is currently at fairly cheap levels, with the price-to-earnings ratio at only about 9x. So for investors looking for an interesting value play, this one fits the bill.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 Vaping Stocks to Get into Ahead of the Crowd * 5 Retail Stocks That Are Winning Big This Holiday Season * Make the Shift Toward Value Stocks With These 5 Picks The post VMware's M&A Strategy Looks Spot On appeared first on InvestorPlace.
From the surge in Bitcoin to the collapse of the IPO class of 2019, it was a wild year. Here's how to understand what of any of these things means anything.
Okta (NASDAQ:OKTA) stock has struggled since peaking in July. It showed signs of recovering in the latter part of November. Still, trade concerns killed that rally, and its decline accelerated despite its positive fiscal Q3 results which it unveiled on Dec. 5.Source: Lori Butcher / Shutterstock.com Nonetheless, this shows why investors need to differentiate OKTA stock from Okta, the cybersecurity firm. Although I foresee a bright future for Okta and its signature product, the shares already reflect strong performances by the company for years to come. Okta vs. OKTA StockOne month after I dubbed OKTA stock "too unpredictable to buy," it is trading at approximately the same level as it was when my column was published. OKTA stock rose shortly after my column was published, but increased trade tensions stopped the rally in its tracks. The drop continued even though the company's Q3 results beat analysts' average estimates.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOKTA stock price has, for the most part, steadily risen since 2017. The rally of Okta stock accelerated in 2019.The Cybersecurity and Infrastructure Security Agency (CISA), a division of the federal government's Department of Homeland Security stresses the importance of maintaining long, complex passcodes. But remembering dozens of such passwords has proven too difficult for most people. Given the commonality of this problem, the appeal of Okta's relatively simple, single sign-on product has both customers and investors singing the company's praises. * 7 Vaping Stocks to Get into Ahead of the Crowd Many investors have also seen its potential, even though Wall Street analysts expect its losses to continue through 2022. However, the fact that analysts, on average, forecast revenue growth of 43.7% in fiscal 2020 and 31.4% in FY21 shows that the company is continuing to gain traction.As another InvestorPlace contributor, Josh Enomoto, stated, the 32% increase in the number of the company's customers and the 41% increase in its $100,000-plus per year contracts bode well for OKTA stock. Although its growth will slow, I expect it to continue expanding robustly for years to come.Still, investors should not confuse Okta with OKTA stock. The OKTA stock price of around $114 is about 20% below its July peak of $141.85. Still, at a price-sales ratio of 25.4, it has become too expensive. The Danger of Stocks Like OKTAI have followed the stock market for a long time. The history of some of these high-flying stocks does not bode well for OKTA stock investors. For example, VMware (NYSE:VMW) began trading in 2007. Optimism about its virtualization software drove its multiples into the stratosphere, and it quickly rose to a peak of over $125 per share that year. Like most every other stock, it fell hard during the 2008-09 financial crisis. As a result, it did not surpass its 2007 high again until 2017.Some of the high flyers of the dot-com era have done even worse. Cisco (NASDAQ:CSCO) still has not returned to its 2000 high. Even Microsoft (NASDAQ:MSFT) did not reach its dot-com bubble high again until 2016.But I think OKTA has a bright future. More clients, large and small, continue to buy its product. I also think its overseas business will grow and that it will offer more types of single sign-on products. However, with several years of gains already priced into the equity, I would not recommend buying OKTA stock at these levels. Final ThoughtsThe OKTA stock price reflects gains too far into the future to be attractive. In a world in which the internet facilitates so much business, the need for cybersecurity only continues to grow. As the breadth of passwords needed exceeds people's ability to remember all of those codes, Okta's single sign-on product is quite beneficial.However, the traders of OKTA stock should be aware of the history of overvalued stocks.And while I like Okta as a company, buying OKTA stock now could cause investors to lose a great deal of money down the road. Why take the risk?As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Vaping Stocks to Get into Ahead of the Crowd * 5 Retail Stocks That Are Winning Big This Holiday Season * Make the Shift Toward Value Stocks With These 5 Picks The post Okta Stock Looks Dangerous at This Point appeared first on InvestorPlace.
Okta (NASDAQ:OKTA) is a cloud software company that provides identity and access management services, putting it in the scorching hot software-as-a-service arena.Source: Michael Vi / Shutterstock.com Although shares of Okta are up 80% year-to-date, the company's market capitalization of $14 billion puts the stock at the higher end of mid-cap territory, one of the market's sweet spots. However, that may not be enough to entice investors over the near term. Okta stock resides almost 20% below its 52-week high. That's not very encouraging.Further muddying the near-term outlook for Okta stock is investors' willingness to pay up for SaaS stocks, which have come under scrutiny this year for being richly valued. Indeed, Okta isn't a value play. The shares trade around 26 times next year's sales and 35.4 times book value.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat said, Okta stock has the potential to justify those frothy multiples. For its fiscal third quarter, the company said total revenue jumped 45% while subscription revenue surged 48%. Additionally, the subscription revenue backlog (performance obligations in industry lingo) topped $1 billion."Industry leading growth in subscription revenue, remaining performance obligations, and billings were driven by strong execution and the continued secular tailwinds of increasing adoption of cloud applications, digital transformation as companies improve how they connect with their employees and customers, and deployment of zero trust security environments," Okta CEO Todd McKinnon said. Street Views on Okta StockTo say Wall Street is divided on Okta stock may be a stretch, but there isn't a consensus on the cloud security name, either. Twenty sell-side analysts cover the name, a hefty amount for a company with a $14 billion market value. Thirteen are bullish or very bullish on the stock. Seven have the equivalent of "neutral" ratings. In other words, investors can certainly find other names that drum more division among analysts than Okta.Count D.A. Davidson analyst Andrew Nowinski among the Okta stock bulls. * 7 Vaping Stocks to Get into Ahead of the Crowd "First, Okta offers the only neutral platform, which is a critical differentiating factor when customers choose a single sign-on solution," he said in a note out last month. "Second, the company recently launched some new products, including the Okta Access Gateway, which extends Okta's reach to on-premise applications. Third, Okta continues to gain traction with the customer identity use case, which we believe is a large market opportunity that will continue to ramp (currently only 30% of new billings). Finally, free cash flow is expected to be positive this year and will continue growing."The consensus price target is near $140, but the shares closed just over $115 on Dec. 19. As is the case with many growth names, there are wider-ranging themes at play with Okta. For example, the identity-as-a-service market continues to grow.That market is expected to grow from $2.5 billion this year to $6.5 billion by 2024.The access management arena, Okta's core competency, is booming. And positively, the company is cementing its status as a leader in that market. Gartner recently highlighted Okta's rise within the quadrant, noting the company's "market responsiveness and extensibility in authentication." Bottom Line: It's a Numbers GameIn finance, it's always about numbers, but that's particularly true of growth stocks like Okta. In order for the stock to continue warranting premium valuations, the company likely needs to grow revenue at about 30% and cash flow margins by around 20% or more over the next several years. Cash flow was just 7% of revenue in the third quarter, so there's ample room for growth.That is one way of saying that a path to profitability would surely boost the case for Okta stock. This year, investors have some willingness to tolerate lack of profits -- if the company operates in the right market segment and is growing revenue. Okta checks those boxes, but at these multiples, it would be best if the company doesn't try investors' patience.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Vaping Stocks to Get into Ahead of the Crowd * 5 Retail Stocks That Are Winning Big This Holiday Season * Make the Shift Toward Value Stocks With These 5 Picks The post Okta Stock Is Still a Hidden Gem After Rallying appeared first on InvestorPlace.
Okta, Inc. (NASDAQ: OKTA), the leading independent provider of identity for the enterprise, today announced that its Chief Financial Officer, Bill Losch, is scheduled to present at the 22nd Annual Needham Growth Conference on Wednesday, January 15, 2020 in New York at 12:50pm ET.
The stock market pause after Thanksgiving gave a chance to build handles on software names Adobe, Okta, Trade Desk, ServiceNow and Dynatrace.
Okta's (OKTA) third-quarter fiscal 2020 results benefit from new customer additions and growing international momentum driven by increasing adoption of Identity solutions.
Dow futures: The stock market rally is acting well going into Friday's jobs report. Tesla, DocuSign, Okta, Zoom and Ulta Beauty led movers late.
In late September 2019, shares of identity cloud platform company Okta (NASDAQ:OKTA) were tumbling towards $100 amid a broader shift out of momentum and growth stocks. I wrote on InvestorPlace.com that the selloff was overdone, and that OKTA stock at $100 looked like a compelling buying opportunity for three big reasons.Source: Lori Butcher/Shutterstock.com First, the valuation underlying OKTA stock was favorable at those levels, and left room for healthy upside potential. Second, the fundamentals and optics surrounding Okta were positioned to improve heading into 2020. Third, the technicals pointed to a bottom in the stock.Fast forward two months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOKTA stock jumped 30% to trade above $130 by late November. To be sure, shares pulled back towards $120 in early December. But, in the big picture, this pullback is just noise. Zooming out, recent strength in the stock should persist for the same three big reasons Okta looked like a strong buy at $100.First, the valuation underlying OKTA stock remains favorable. Second, the fundamentals surrounding the company continue to improve. Third, the technicals support a continued uptrend in shares. The Valuation Remains FavorableThe first big reason that recent strength in Okta stock should persist is that shares remain reasonably valued at $120. * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping Okta is a long-term winner with huge profit growth potential. In a nutshell, this company is the leader in the cloud-based identity access management (or IAM) market. This is a secular growth market driven by multiple catalysts. Most importantly, companies are increasingly adopting IAM solutions thanks to the proliferation of internet-connected devices in an enterprise network from trends such as bring-your-own-device and the Internet of Things. Further, these companies are ditching their legacy IAM solutions in favor of cloud IAM solutions, because of the broader enterprise cloud transformation.These secular trends imply huge growth for Okta in the long run. According to Grandview Research, global IAM spend measured $9.9 billion in 2018. Gartner pegs global IT spend in 2018 at $3.65 trillion. Thus, global IAM spend measured just 0.3% of global IT spend in 2018. That share will grow over time as more and more companies pivot towards identity-based security solutions, in order to better accommodate their increasingly complex and decentralized enterprise tech ecosystems.At the same time, global IT spend will sustain its historically normal 2%-3% growth rate. That combination ultimately makes 13%-15% growth in the global IAM market seem achievable in the long run. In that space, Okta will expand market share, thanks to addressable market expansion and the cloud pivot. Share expansion in a 13%-15% growth market implies it can count on 20%-plus revenue growth for a lot longer.At the same time, this company operates at gross margins that are quickly closing in on 80%. With gross margins that high, all Okta needs to do to enjoy huge profits at scale is keep expense growth below revenue growth, so below 20%. That seems totally achievable in the long run.Overall, I think Okta has the potential to do about $11 in earnings per share by 2030. Based on an application software sector-average 35-times forward earnings multiple and a 10% annual discount rate, that equates to a 2019 price target for OKTA stock of nearly $150. The Fundamentals Continue to ImproveThe second big reason that Okta's recent strength should persist is that the fundamentals surrounding the company continue to improve heading into 2020.Okta sells to enterprises. Thus, when enterprises are spending big, more money flows into its platform. When enterprises aren't spending big, less money flows in.Since early 2018, businesses around the world haven't been spending big. That's because escalating U.S.-China trade tensions dampened business enthusiasm, which caused cuts to capital spending plans.Now, though, those escalating U.S.-China trade tensions are finally easing -- and they should continue to ease into 2020.As they do, business leaders will become more enthusiastic about the near-term economic outlook. They will consequently re-up their capital spending plans. While this occurs, businesses will more aggressively continue on their cloud transformation plans, and a big part of that includes buying Okta's cloud IAM solutions.Because of this reinvigorated business enthusiasm tailwind, Okta should continue to report above-consensus numbers into 2020. The Technicals Imply Further UpsideThe third big reason that recent strength in OKTA stock should persist is that the technicals imply that shares are on a sustainable, new uptrend.Specifically, Okta's 50-day moving average has been sloping negative ever since September. And recently, it crossed below the 200-day moving average, which remains upward sloping. As soon as it did, though, the slope of the 50-day moving average turned around, and the 50-day popped back above the 200-day.Today, both the 50-day and 200-day moving averages are sloping up, with the 50-day above the 200-day.In other words, from a technical standpoint, recent turbulence in OKTA stock has passed, and shares are now in the early stages of forming a new, sustainable uptrend. Bottom Line on OKTA StockOkta was a great buy at $100 in late September because the valuation was favorable, the fundamentals were positioned to improve and the technicals supported the bull thesis. And since then, the stock has risen more than 20%.OKTA stock will continue to rally from $120 in early December for the same three reasons: The valuation remains reasonable, the fundamentals continue to improve and the technicals continue to support the bull thesis. As such, I wouldn't be surprised to see shares make a move towards their $140 all time highs soon.As of this writing, Luke Lango was long OKTA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Tech Stocks You Wish You'd Bought During 2019 * 5 Under-the-Radar Marijuana Stocks With Over 100% Upside * Watch These 5 STARS Stocks as They Change the Future The post 3 Big Reasons Why Recent Strength In Okta Stock Will Persist appeared first on InvestorPlace.
Saudi Aramco unveils record $1.7 trillion IPO; Twitter enlists $700 million worth of junk-bond 'followers'; Uber details some rough rides; Okta posts mixed results; and 180,000 new jobs are expected to have been added to the U.S. economy last month.
Okta (OKTA) delivered earnings and revenue surprises of 41.67% and 6.56%, respectively, for the quarter ended October 2019. Do the numbers hold clues to what lies ahead for the stock?
The U.S. is bracing for a potential cyber attack from Iran, but how prepared is the Trump administration for that possibility? Yahoo Finance's Kristin Myers breaks it down. Zack Guzman, Heidi Chung, along with Level Agency CEO and "The CEO's Digital Marketing Playbook" author Thomas Donohoe also join in on the conversation.
As roughly 7 million Americans gear up to fly during the holiday season, an expert is warning some charging docks at the airport could make consumers vulnerable to cyberattacks. SAP National Security Services CEO Mark Testoni joins Yahoo Finance's Kristin Myers and Emily McCormick, along with BigEyedWish Founder Ian Wishingrad, to discuss.