When Okta (OKTA) confirmed a data breach, its stock continued its downtrend. The stock is now half price from 52-week highs. Based on the past high, the stock looks like it is on sale.
Okta, which offers digital identity authentication, confirmed last Tuesday that hacking group Lapsus$ breached its security. This happened in January but Okta shared the news last week. The cyber security supplier risks damaging its brand and customer trust after the hack.
Adobe (ADBE), a software supplier of creative tools, is trading close to yearly lows. Shares are now at levels not seen since the Covid pandemic selloff of 2020. The company expects it will earn $3.30 a share in the next quarter on $4.34 billion in revenue. Both are below consensus estimates.
In the last quarter ended March 4, Adobe earned $3.37 a share on $4.26 billion in sales. On the stock chart, ADBE stock looks like it will find support at the lows. However, fundamentals are worse than markets expect. Adobe will have a few quarters of below-consensus results. Customers already bought the software they needed to arm staff with productivity tools. Chances are high that markets will assign a lower price-to-earnings multiple on the stock to adjust for a 2022 slowdown.
