OKTA - Okta: Turnaround Already Underway After Its Recent Plunge
2024-05-26 11:30:00 ET
Summary
- Okta stock fell into a bear market after its euphoric surge following its previous earnings release.
- Okta investors are likely feeling uncertain, as we approach its earnings scorecard next week.
- Okta faces intense competition against Microsoft. However, it has also proven its business model.
- Given Okta's demonstrated profitability, management has the potential to outperform its cautious FY2025 guidance.
- I argue why OKTA has already bottomed in April, as the turnaround toward its previous highs is already underway.
Okta Stock Suffered A Bear Market
Okta, Inc. ( OKTA ) investors are approaching its highly-anticipated earnings scorecard next week. Okta's fiscal first-quarter earnings release will be delivered on May 29, even as OKTA stock has yet to recover its post-earnings highs after Okta's earnings release for the previous fiscal quarter. As a reminder, OKTA suffered a steep pullback of more than 20% from its early March 2024 highs, dropping into a bear market through OKTA's recent April lows. Therefore, I assess Okta investors as heading into the company's upcoming earnings scorecard with more uncertainty. I last updated Okta investors some time ago, in 2022. While OKTA went through a significant growth normalization phase, which led to further downside, my bullish view of OKTA has remained consistent....
Okta: Turnaround Already Underway After Its Recent Plunge