Last week, Okta (OKTA) posted quarterly results. The security platform reported zero damage to
business loss because of a data breach. OKTA stock broke down from its $220 - $260 trading range in
November 2021.
OKTA stock bottomed at $80 in the last month. Shares rallied to nearly $100 for a 21% weekly return,
compared to a 64% fall from a 52-week high. The company posted revenue of $414.94 million, up by
65.3% Y/Y. It lost 27 cents a share (non-GAAP). In Q2, it expects revenue of up to $430 million. It will lose
between 31 to 32 cents a share. By 2023, revenue will top up to $1.815 billion. Non-GAAP operating
losses of $162 million to $167 million or $1.11 - $1.14 EPS losses are better than analyst estimates.
Investors are avoiding technology stocks that lose money. Okta is an exception.
CrowdStrike (CRWD) posted good annual recurring revenue growth. ARR grew by 61% Y/Y. It has a
powerful cybersecurity platform that corporations need. Still, the ARR of $190.5 million does not justify
the $37.5 billion market capitalization. Stock markets are still at elevated levels.
Markets cannot sustain such valuations, as inflation rates remain high. Interest rates will keep rising to
counter those levels, hurting P/E and P/S multiples for both CRWD and OKTA stock.
OKTA and CRWD are compelling short-term buys for speculators. Consider trading on a drop instead of
chasing the rally.
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