Anyone still holding Okta? The stock is jumping 5% today, after Raymond James upgraded it to a Strong Buy, and a PT of $300, saying that Okta has a “groundswell of catalysts”.
I agree. I wrote back in May here that Okta’s acquisition of Auth0 more than doubles its TAM. The stock is up 17% since I wrote that: https://discussion.fool.com/hi-ant-the-auth0-acquisition-closed-…
Before the acquisition, Okta provided workforce identity solutions, with an estimated TAM of $20B. After the acquisition, Okta has solutions for customer identity, which adds $30B to the TAM. With total revenue this year projected at $1.3B, they’re just getting started penetrating the market.
When they announce earnings next week Wed (Sep 1), Auth0 will have contributed revenue for the entire quarter, and we’ll get a good idea how the company as a whole is growing. I have a “let winners run” mentality. and haven’t seen any reason to sell my shares, first purchased in Feb 2018 at around $38. That price looks cheap now, but, believe me, as with all SaaS stocks, it looked super-expensive back then from a P/S multiple perspective.
I wrote back in May here that Okta’s acquisition of Auth0 more than doubles its TAM. The stock is up 17% since I wrote that
Let me throw a counterargument here. Below are the share price movements of other companies that are discussed on this board since your post on May 27.
So, telling the story this way, it seems that folks that decided to sell Okta and deploy the cash in another high-performing company made the right decision (at least for now). Investing is completely personal, and if holding Okta let’s you sleep at night – then you’re doing what’s right for you. But I thought that showing the above example was another way of validating those that chose to make a different decision with the same data.
Please read this before posting https://discussion.fool.com/we39re-drifting-34904974.aspx and visit
https://discussion.fool.com/for-board-newcomers-and-oldtimers-34… to maximize your learning of the board
Below are the share price movements of other companies that are discussed on this board since your post on May 27.
With the exception of Zscaler and Snowflake, I have large allocations of every stock in the above list as well. So for me, it’s not about Okta OR the others above, it’s about Okta AND the above. If I sold, especially in my taxable account, I’d take a tax hit of over 35%. I also continue to hold Shopify, MongoDB, Trade Desk and Roku for that reason. Basically, I let my winners run, and I like the diversification.
Okta Inc. (OKTA), Market Cap $39.9 billion
Salesforce.com Inc. (CRM), Market Cap $253.4 billion
I am still long Okta because of my confidence in CEO Todd McKinnon and COO Frederic Kerrest. Before founding Okta, they helped build Salesforce.com. They know what a large SaaS company looks like.
Although no longer a hypergrowth story, I feel Okta has plenty of growth ahead of it.
FWIW, I want to see evidence that Okta is moving upstream in the next earnings report. That is to say, I want to see larger deals.
“Bet the jockey, not the horse.” - Old racetrack saying
But follow the numbers.
Yes, still holding OKTA, since 2018. Thank you for this information.