Core Thesis - Okta, Inc. is positioned as a leader in digital identity management, providing solutions for user access and security through its Universal Directory, Single Sign-On (SSO), and Adaptive Multi-Factor Authentication (MFA) [2][3] Business Model and Competitive Advantage - The company's business model benefits from strong network effects and pricing power, resulting in high switching costs for customers and a durable competitive moat [3] - Okta's improving profitability and efficiency are reflected in its increasing customer penetration across global enterprises [3] Financial Performance and Market Sentiment - After years of negative earnings, Okta has recently turned net positive, indicating improved cost discipline and operational leverage [4] - Revenue growth is robust but expected to decelerate as the company matures, with mixed market sentiment due to past security breaches and calls for greater transparency [4] Valuation Concerns - Despite high gross margins and strong fundamentals, valuation remains a concern, with a discounted cash flow analysis suggesting an intrinsic value of approximately $28.58 per share, indicating the stock may be overvalued [5] - The current risk/reward profile appears unfavorable, leading to a near-term "Sell" stance despite the company's structural strengths [5] Recent Developments - The stock price has appreciated approximately 0.22% since previous coverage, supported by strong product adoption and a bullish thesis on its AI-driven identity management platform [6]