# Okta - a "groundswell of catalysts" **URL:** \ **Category:** Saul’s Investing Discussions\ **Created:** [August 25, 2021, 1:56pm UTC](https://discussion.fool.com/t/okta-a-groundswell-of-catalysts/56152 "2021-08-25T13:56:05Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![rdutt](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/rdutt/32/3382_2.png) [@rdutt](https://discussion.fool.com/u/rdutt)\ **Post date:** [August 25, 2021, 1:56pm UTC](https://discussion.fool.com/t/okta-a-groundswell-of-catalysts/56152/1 "2021-08-25T13:56:05Z")
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-…](https://discussion.fool.com/hi-ant-the-auth0-acquisition-closed-just-3-weeks-34841643.aspx) 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. -Ron ---
**Author:** ![rmtzp](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/rmtzp/32/14850_2.png) [@rmtzp](https://discussion.fool.com/u/rmtzp)\ **Post date:** [August 25, 2021, 3:29pm UTC](https://discussion.fool.com/t/okta-a-groundswell-of-catalysts/56152/2 "2021-08-25T15:29:31Z")
_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_ Rdutt, 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. Asana: 110% Cloudflare: 54% Docusign: 49% Datadog: 48% Upstart: 47% Zoominfo: 42% Zscaler: 35% Lightspeed: 34% Crowdstrike: 23% Snowflake: 20% Okta: 15% Twilio: 7% 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. -RMTZP _Please read this before posting [https://discussion.fool.com/we39re-drifting-34904974.aspx](https://discussion.fool.com/we39re-drifting-34904974.aspx) and visit_ _[https://discussion.fool.com/for-board-newcomers-and-oldtimers-34…](https://discussion.fool.com/for-board-newcomers-and-oldtimers-34891686.aspx) to maximize your learning of the board_ ---
**Author:** ![rdutt](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/rdutt/32/3382_2.png) [@rdutt](https://discussion.fool.com/u/rdutt)\ **Post date:** [August 25, 2021, 3:50pm UTC](https://discussion.fool.com/t/okta-a-groundswell-of-catalysts/56152/3 "2021-08-25T15:50:43Z")
Thanks, RMTZP. _Below are the share price movements of other companies that are discussed on this board since your post on May 27._ _Asana: 110%_ _Cloudflare: 54%_ _Docusign: 49%_ _Datadog: 48%_ _Upstart: 47%_ _Zoominfo: 42%_ _Zscaler: 35%_ _Lightspeed: 34%_ _Crowdstrike: 23%_ _Snowflake: 20%_ _Okta: 15%_ _Twilio: 7%_ 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. -Ron ---
**Author:** ![wrciii](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/wrciii/32/3367_2.png) [@wrciii](https://discussion.fool.com/u/wrciii)\ **Post date:** [August 25, 2021, 9:18pm UTC](https://discussion.fool.com/t/okta-a-groundswell-of-catalysts/56152/4 "2021-08-25T21:18:30Z")
Okta Inc. (OKTA), Market Cap $39.9 billion [Salesforce.com](http://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](http://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. wrciii “Bet the jockey, not the horse.” - Old racetrack saying But follow the numbers. ---
**Author:** ![TheQuietAmerican](https://g.foolcdn.com/misc-assets/discourse-member-avatar_120px_cyan600.png) [@TheQuietAmerican](https://discussion.fool.com/u/TheQuietAmerican)\ **Post date:** [August 27, 2021, 4:55pm UTC](https://discussion.fool.com/t/okta-a-groundswell-of-catalysts/56152/5 "2021-08-27T16:55:39Z")
Hi Ron, Yes, still holding OKTA, since 2018. Thank you for this information. TQM