Is Okta A Good Stock To Buy Or Sell For The Long Term?

Sep. 14, 2021 3:46 PM ETOkta, Inc. (OKTA)17 Comments
Bert Hochfeld profile picture
Bert Hochfeld
21.08K Followers

Summary

  • Okta reported the results of its first quarter as an entity including Auth0 for the first time a few days ago.
  • The results of the quarter were extremely positive; the reaction of the shares was substantially less so.
  • The company succeeded in exceeding all of the revenue metrics that are typically forecast, both on a legacy basis (i.e. Okta only), and as a combined company.
  • The company raised guidance, although the increased guide was prudent, to say the least, and based on the sub-headline revenue metrics reported, the forecast seems likely to be exceeded.
  • Okta is gaining market share in the identity management space and seems on a path where it will dominate the Customer Identify and Access Management component over the coming years.
Fingerprint Biometric Authentication Button. Digital Security Concept
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Okta - The two-sided behemoth in identity management

Okta is perhaps not a household word, but it is the leader in the cloud-based identity management space and that is one of the core pillars of a cybersecurity strategy. Lately, Okta shares have been

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Bert Hochfeld profile picture
21.08K Followers
Bert Hochfeld graduated with a degree in economics from the University of Pennsylvania and received an MBA from Harvard. Mr. Hochfeld has enjoyed a long career in the tech world, working for IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software. Starting in the 1990s, Mr. Hochfeld worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of the software space. In 2001, Mr. Hochfeld formed his own independent research company, Hochfeld Independent Research Group, which provided research services to major institutions including Fidelity, Columbia Asset, SAC Capital, and many other prominent institutions and hedge funds. He also operated the Hepplewhite Fund, a hedge fund that specialized in technology investments. Hedge Fund Research, an independent 3rd party firm that specializes in ranking managers, rated the Hepplewhite Fund as the best performing small-cap fund for the 5 years ending in 2011. In 2012, Mr. Hochfeld was convicted of misappropriating funds from a hedge fund he operated. Mr. Hochfeld has published more than 500 articles on Seeking Alpha, all dealing with companies in the information technology space. Highly esteemed for his investment wisdom accumulated over decades, Mr. Hochfeld ranks in the top 0.1% of Tip Ranks analysts for his selection of information technology stocks and their subsequent successes.

Disclosure: I/we have a beneficial long position in the shares of OKTA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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