Key Takeaways OKTA's AI-powered identity tools and innovations like Cross App Access support enterprise AI adoption. AVGO's infrastructure software revenue rose 25% in Q2, driven by VMware conversions and AI demand. OKTA's valuation is lower than AVGO's, with steady earnings growth and strong customer expansion momentum.Broadcom (AVGO) and Okta (OKTA) are key providers of security software solutions for enterprises. AVGO offers Endpoint Security (Symantec and Carbon Black), Network Security, Information S ...

Key Takeaways HubSpot's AI-powered platform and pricing model fuel adoption across premium and entry-level markets. Okta's AI-integrated security tools enhance identity protection, driving improved earnings estimates. Adobe's Firefly and Express apps expand its AI-driven creative and marketing ecosystem.The artificial intelligence (AI) infrastructure space recently gathered steam, with DeepSeek-related fears turning out to be overblown. The global shift toward digitization creates opportunities in various ...

Key Takeaways OKTA expands AI security to protect users, bots and devices under a zero-trust identity framework. OKTA's threat detection now powers PANW's Cortex XSIAM and XDR to enable automated threat protection. CYBR posts strong growth as MSFT scales Entra ID to 900M users, intensifying IAM market competition.Okta (OKTA) is stepping up its efforts in identity protection by putting artificial intelligence (AI) at the center of its security strategy. The company's Identity Threat Protection with Okta AI ...

Key Takeaways OKTA's subscription revenues rose 12% Y/Y to $673M, now making up 98% of the total Q1 revenues. New modules like Identity Governance and Privileged Access drove 15% of new bookings in the quarter. Customers with above $1M in ACV grew 20% Y/Y, aided by a reorganized, segment-focused sales team.Okta’s (OKTA) subscription business is booming, driven by strong customer demand and continued product innovation. In the first quarter of fiscal 2026, subscription revenues grew 12% year over year to $ ...

Group 1: Investment Recommendations - Jim Cramer recommended buying SoFi Technologies, Inc. (SOFI) as it plans to allow retail clients to invest in companies like SpaceX, OpenAI, and Epic Games [1] - Cramer expressed a preference for CrowdStrike Holdings, Inc. (CRWD) over Okta, Inc. (OKTA), despite Okta's strong first-quarter revenue of $688 million, which exceeded analyst estimates [2] - Cramer suggested waiting for a pullback in Lincoln Electric Holdings, Inc. (LECO) shares before buying [4] Group 2: Analyst Ratings and Price Targets - Keefe, Bruyette & Woods analyst Sanjay Sakhrani maintained an Outperform rating for American Express Company (AXP) and raised the price target from $360 to $371 [3] - Truist Securities also maintained a Buy rating for American Express and increased the price target from $335 to $340 [3] - BMO Capital analyst Ryan Griffin initiated coverage on Fair Isaac Corporation (FICO) with an Outperform rating and set a price target of $2,000 [3] Group 3: Company Performance and Stock Movements - SoFi shares increased by 3.7% to settle at $20.97 [7] - Okta shares decreased by 4.8% to close at $94.41 [7] - American Express shares rose by 2.5% to close at $325.24 [7] - Fair Isaac shares fell by 0.5% to settle at $1,584.38 [7] - Lincoln Electric shares increased by 1.4% to close at $223.47 [7] - Campbell's Company (CPB) reported better-than-expected third-quarter results, although its shares slipped by 0.8% to settle at $30.49 [4][7]

Core Viewpoint - The average brokerage recommendation (ABR) for Okta (OKTA) is 2.00, indicating a Buy, based on recommendations from 41 brokerage firms [2]. Brokerage Recommendations - The ABR of 2.00 is derived from 21 Strong Buy and 2 Buy recommendations, which account for 51.2% and 4.9% of all recommendations respectively [2]. - Despite the positive ABR, relying solely on brokerage recommendations may not be advisable, as studies show they often fail to guide investors effectively [5][10]. Analyst Bias - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, issuing five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - This misalignment of interests can lead to misleading guidance for retail investors [7][10]. Zacks Rank Comparison - Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from ABR, as it is a quantitative model reflecting timely earnings estimates, while ABR may not be up-to-date [9][12]. Current Earnings Estimates - The Zacks Consensus Estimate for Okta's current year earnings remains unchanged at $3.28, indicating steady analyst views on the company's earnings prospects [13]. - This stability has resulted in a Zacks Rank 3 (Hold) for Okta, suggesting caution despite the Buy-equivalent ABR [14].

Group 1: S&P 500 Performance - The S&P 500 index increased by 20.5% during the two-month period ending June 9, 2025, marking only the sixth occurrence of such a return since 1950 [1] - If the index follows historical trends, it could rise by 31% to 7,868 by next June, indicating a 26% upside from its current level of 6,230 [2] Group 2: The Trade Desk - The Trade Desk operates as a leading independent demand-side platform (DSP) in the adtech industry, utilizing AI to optimize advertising campaigns across digital channels [5] - The company reported a 25% increase in revenue to $616 million and a 27% rise in non-GAAP net income to $0.33 per diluted share in the first quarter [6] - Adtech spending is projected to grow at 14% annually through 2030, with The Trade Desk recognized as a leader in adtech innovation [7] - The median target price for The Trade Desk among 41 analysts is $84 per share, suggesting a 15% upside from its current price of $73 [8] - The Trade Desk's independent business model allows it to avoid conflicts of interest, unlike competitors such as Google and Meta [9] - The company is expected to upgrade all clients to its Kokai platform by year-end, which includes new AI tools for optimizing campaigns [10] - Wall Street anticipates an 11% annual earnings increase through 2026, although the current valuation of 42 times earnings may appear high [11] Group 3: Okta - Okta is a leader in identity and access management (IAM) software, which is crucial for securing access to sensitive applications [12] - The company reported a 12% revenue increase to $688 million and a 32% rise in non-GAAP net income to $0.86 per diluted share in the first quarter [14] - IAM is increasingly important as identity-based attacks account for 30% of all cybersecurity incidents, with spending expected to grow at 12.6% annually through 2030 [15] - Wall Street estimates Okta's adjusted earnings will increase at 10% annually through fiscal 2027, with a current valuation of 32 times earnings [16]

Core Viewpoint - Okta (OKTA) has experienced a downtrend with a 5.7% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - Okta's current RSI reading is 26.89, indicating that heavy selling may be exhausting itself, which could lead to a price rebound [5]. - Stocks oscillate between overbought and oversold conditions, and the RSI helps identify potential reversal points, making it a useful tool for investors seeking entry opportunities [3]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts regarding Okta's earnings estimates, with a 0.3% increase in the consensus EPS estimate over the last 30 days, which often correlates with near-term price appreciation [7]. - Okta holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8].

Core Insights - Okta (OKTA) aims for a 15% compound annual growth rate (CAGR) in revenues, projecting growth from $1.86 billion in fiscal 2023 to approximately $2.85-2.86 billion by fiscal 2026, despite cautious near-term guidance of 9-10% year-over-year growth [1][9] Financial Performance - For the first quarter of fiscal 2026, Okta reported an 11.5% revenue increase to $688 million, with remaining performance obligations (RPO) rising 21% year-over-year, indicating a solid pipeline of future business [2][9] - The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is set at 84 cents per share, reflecting a 16.67% year-over-year growth, while the fiscal 2026 earnings estimate is pegged at $3.28 per share, suggesting a 16.73% growth over fiscal 2025 [13][14] Strategic Initiatives - Okta's expanding identity platform, including high-growth offerings like Identity Governance, Privileged Access, and Device Access, is enhancing its security services and relevance in enterprise IT [3][9] - The company has separated its sales teams for Workforce Identity and Customer Identity (Auth0) to sharpen focus and improve sales execution [3] Market Position and Competition - Okta is gaining traction among large enterprises through strategic partnerships, such as with AWS, with the number of customers generating over $1 million in annual contract value (ACV) growing 20% year-over-year [4][9] - However, Okta faces stiff competition from Microsoft, which has integrated its IAM platform Entra ID across its services, supporting over 900 million monthly active users [5] - CyberArk Software also presents a challenge with its advanced identity security platform and strong profitability, bolstered by strategic acquisitions [6] Valuation Metrics - Okta currently trades at a premium with a forward Price/Cash Flow ratio of 23.11, higher than the broader Zacks Computer and Technology sector's 20.02X, and has a Value Score of D [10]

Key Takeaways PANW Q3 revenue rose 15.7% but faces headwinds from shorter contracts and cloud transition slowdowns. OKTA Q1 revenue climbed 12% with EPS up 32%, boosted by AI-led identity security demand. Consensus points to steady PANW growth but faster profit gains for OKTA in fiscal 2026.Palo Alto Networks (PANW) and Okta (OKTA) are both U.S.-based cybersecurity companies that specialize in protecting enterprises from evolving digital threats. While PANW focuses broadly on next-gen firewalls, cloud sec ...