|Day's Range||5.75 - 5.77|
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.
Guess?, Ollie???s Bargain Outlet, Twilio, Wix.com and Shopify highlighted as Zacks Bull and Bear of the Day
While Twilio Inc. (NYSE:TWLO) shareholders are probably generally happy, the stock hasn't had particularly good run...
Twilio , the leading cloud communications platform, today announced that its third quarter fiscal year 2019 results will be released on Wednesday, October 30, 2019, after market close.
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.
At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Tiger Global because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps […]
Twilio lies behind the apps we every day, including Uber and eBay. Here is what the fundamentals and technical analysis say about buying TWLO stock now.
Twilio gains after RBC Capital Markets initiates coverage with an outperform rating and a $135 one-year price target on what it sees as 'one of the most durable growth stories in software.'
Twilio (TWLO), the leading cloud communications platform, today announced the company is recognized as a worldwide leader in the IDC MarketScape for Cloud Communications Platform-as-a-Service (“CPaaS”). The report notes, “Twilio has emerged as the de facto icon of the CPaaS segment,” and highlights the company’s vision and strategy to drive digital transformation within the enterprise. “Twilio continues to redefine the communications segment,” said Courtney Munroe, group vice president of Worldwide Telecommunications Research, IDC.
Cloud stocks rose Monday amid a broader upswing in the markets. Among notable small- and medium-cap stocks in the cloud sector, 16 rose while 3 fell. Twilio shares rose $3.40, or 3.19%, to $109.96. Juniper Networks shares fell 12 cents, or 0.
Twilio Inc (NYSE: TWLO ) shares have gotten hammered of late, dropping 21.8% in the past three months. One Wall Street analyst said Monday that investors shouldn’t get too hung up on near-term issues and ...
This isn't uncommon and occurs multiple times a year, which gives investors an opportunity to buy one of Cramer's "cloud kings," Twilio. Speaking to Cramer in an interview, Lawson said his company expanded from $100 million to $1 billion by focusing on what customers need.
Data analytics company Alteryx (AYX) is down over 5% today. Several tech stocks have corrected significantly this month. Let's take a closer look.
Technology stocks such as Shopify were on fire in this year's first half. However, market weakness and valuation concerns hurt tech stocks this month.
As long as you're using a very small portion of your trading account, respecting your stop-losses, and able to handle the risks involved, it might be okay to bet on a lesser-known investment like Okta (NASDAQ:OKTA), but Okta stock comes with a lot of baggage.Source: Sundry Photography / Shutterstock.com I'm not against taking on some riskier investments, and Okta certainly fits into that category. The company specializes in security solutions and identity protection with a cloud-storage angle; this sounds promising on the surface, but a deeper dive will reveal some potential issues with OKTA stock. What Scares Me About OKTA StockYou may have noticed that the stock market is currently undergoing a rotation from momentum stocks (the "momo" stocks, as some folks call them) into value stocks. I've heard a few commentators claim that that's a signal of a weakening bull market, but that's debatable.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Triple-'F' Rated Stocks to Leave on the Shelf In any case, the momo-to-value rotation tends to hit technology stocks the hardest, and especially the high flyers that have experienced a steep ascent in price. Okta Inc. stock indubitably fits that description: it's a cloud-focused company steeped in technology, and OKTA stock's price action looks like a meteorite that went too close to the sun.It's a rather unsettling arc, somewhat reminiscent of what traders previously witnessed with other cloud-centered stocks like Twilio (NYSE:TWLO) and Slack (NYSE:WORK) but more pronounced. Put it this way: the movement from OKTA's $17 IPO price to its all-time high of $141.85, and then the retracement back to $103, isn't exactly what I look for in a potential investment.Too far, too fast. That's my immediate thought when I look at Okta Inc. stock, and even in my most risk-on moods, I'm not one to catch a falling knife. Besides, with the broader market moving away from the "momos" and seeking shelter in older, safer companies, I'll be glad to watch OKTA but I sure as heck ain't gonna chase it. When Bad News Is Good NewsTurning our attention to earnings, some folks might point to the apparently great results from Okta's second-quarter earnings announcement. Evidently, the bar was set so low that an earnings beat was almost inevitable; indeed, the market cheered as the announced loss of 5 cents per share beat analysts' expectations.Even with that, I still see a loss and "not as bad as we thought it would be" simply doesn't cut it for me. In a similar vein, Okta reported operating losses totaling 31% of sales, which is an improvement over the 41%-of-sales operating losses from last year, but is still not confidence-inspiring if you ask me.Given those losses, you'd think that some retrenchment would be in order; to the contrary, however, it appears that Okta has actually ramped up its spending. Year-over-year, the company has increased its employee count by 40%, and Okta's operating expenses have increased dramatically from $105 million to $145 million.It's one thing to be ambitious; it's another matter entirely when a small company accelerates its spending when it should be focusing on its operating losses, an issue you can't spend your way out of.If the market wants to construe Okta's earnings results as good news, that's the market's prerogative; as an independent thinker and investor, I'll pass on this cloud-computing upstart until I see a more disciplined approach to long-term growth. The Takeaway on Okta StockI have to give credit to InvestorPlace's own James Brumley for summing up OKTA's valuation problem: the price-to-sales ratio is 2.2 - far above average - and OKTA is currently trading at 25.7 times its trailing sales.Those numbers alone are enough to scare me away from taking a position in Okta Inc. stock.Sure, the OKTA could still go up in the short-term; markets can be irrational and unpredictable, as we should all know by now. Nonetheless, I'm perfectly content to sit on the sidelines, hoping that OKTA shareholders prosper but not convinced that they're likely to.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Triple-'F' Rated Stocks to Leave on the Shelf * 10 Excellent Stocks to Watch for 2020 and Beyond * 7 Consumer Stocks to Buy in an Uncertain Market The post Even If You Like to Bet on Long Shots, Okta Stock Isn't Your Best Choice appeared first on InvestorPlace.
Twilio Inc (NYSE: TWLO) shares are up 2.9% in the past two days following an upgrade by Morgan Stanley. Dusaniwsky said Twilio has the largest outstanding short position of any stock in the internet services and infrastructure group, with more than $1.73 billion in short interest. Despite Twilio’s 20.9% sell-off in the past three months, Dusaniwsky said Twilio short sellers have registered more than $126.2 million in mark-to-market losses so far in 2019.