OKTA - Why Did Okta Shares Jump 30% Higher in February?
2024-03-08 11:22:05 ET
Shares of Okta (NASDAQ: OKTA) rose 29.9% last month, according to data provided by S&P Global Market Intelligence . The cybersecurity stock was buoyed by an impressive quarterly earnings report. Okta's management team delivered impressive cost controls and fueled optimism about the company's ability to generate cash flow.
Any move higher is generally welcomed by investors, but it's even sweeter when returns are driven by fundamentals rather than speculation. Companies that report strong growth, profitability, or key performance metrics are generally more reliable than stocks that are gaining value primarily on hype.
Okta reported quarterly financial results on Feb. 28, and that news promptly launched the stock higher. The company narrowly exceeded Wall Street's sales forecasts, but it absolutely crushed earnings estimates. That data offered compelling evidence that the cybersecurity company not only has control over its spending, but also that it doesn't need to sacrifice much growth in order to rein in costs.
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Why Did Okta Shares Jump 30% Higher in February?