Some tech names to consider

This will be a running thread to discuss some software names to consider.

OKTA - is a SaaS IAM provider. I have been in and out of this name. it is hitting growth wall, the growth is expected to slow to single digit, similar to large software name. In the recent Oktane (user conference) the company announced new products but nothing that is going to drive the sales… it is telling in the comment…

Qst: When the growth initiatives going to kick in
Ans: in the number we are not seeing it

So on growth…

  • They have opportunity to grow international. Traditionaly they are US and EU company.
  • The companies root is in SMB sector and now they are focusing more on big enterprise and also trying to expand their foot print there.
  • Lastly, the company said they are trying to grow and being profitable, for a tech company stock price that’s like a death sentence.
  • The analysts are downgrading or adjusting their price downwards, not a great sign.

Still OKTA is well established player and will eventually hit the strides in their growth. In the meantime in this growth scare if it gets sold down, one should consider opening a small position to keep track on the company. This is not going to turnaround and run in a quarter or two. We are probably looking at 6 to 8 quarters or 2 years.

I would be interested below $50.

I have touched SNOW elsewhere, but will consolidate under this thread. Add few other names in my radar.

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The security breach is hurting their sales it seems. The 3Q 25 earnings are scheduled for 12/3. We will get more color then. In the meantime they are expected to do $2.5 B for FY 25 and EV to sales is 4.8x.

PS: Their FY closes on 1/31; so FY 25 is 1/31/2025

OKTA has earnings tomorrow after the market, however, today Morgan Stanley upgraded the stock to overweight and raised the price target to $97 from $92 and the stock rallied 4% on that. Rarely companies upgrade right before the earnings call. This shows confidence of the analysts.

after hours OKTA up 20% on earnings announcement. I should have bought some calls… this is the second stock I was watching, watching, and watching.

Our doubts are traitors, And make us lose the good we oft might win, By fearing to attempt.