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US Stock: Okta price pops 5%, here’s what it means


The stock price of Okta Inc (NASDAQ: OKTA) surged 5% on Friday after the cybersecurity

Okta shares rose 10% in regular trading on Thursday and another 17% in after-hours trading before finishing 5% higher.


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CEO and co-founder Todd McKinnon told analysts on the investor call, which I considered to be extremely balanced, that the "security event"

Over 1,000 customers were interviewed by McKinnon and senior management.

 involving LAPSUS$ had practically little impact on the company's customers but did have an impact on management attention. 

Renewal rates were at or near record levels, according to CFO Brett Tighe (and seemed surprised).

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Okta's future appears to be sticky. Importantly, the company remains committed to providing increased value to developers

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By FY26, Okta plans to have $4 billion in revenue and a 20% free cash flow (FCF) margin, generating $800 million in yearly free cash flow.

I recommend looking at the Betashares Cybersecurity ETF if you want diversified exposure to the best cybersecurity companies around the world

Okta's stock price is influenced by a number of factors.

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Despite the'security problem,' the fantastic thing about this quarter for Okta for me was the acquisition of 800 new customers.

It's also encouraging to see dollar-based net retention (DBNR) maintain above 120%, indicating growing loyalty to the core platform.

While the company continues to invest heavily in R&D and marketing in order to attract new customers

While I am conscious of increased competition and a stretched valuation (Okta must produce significant growth to justify its market-beating status),