Okta Viewed as Potential Undervalued Stock by Cramer
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy OKTA?
Source: Yahoo Finance
- Declining Market Attention: Despite Okta's strong performance in identity verification and solid results over the past few quarters, its stock has fallen over 30% from its May highs, indicating market neglect that could undermine investor confidence.
- Low Earnings Growth Expectation: Okta is projected to have only 7% earnings growth this year, which has kept it off Jim Cramer's recommended list, reflecting a cautious market outlook on its future performance.
- AI Security Opportunity: CEO Todd McKinnon highlighted a significant opportunity for Okta in securing thousands, if not millions, of AI agents being created within enterprises, a perspective that resonated with Cramer and could drive future growth for the company.
- Attractive Valuation: With Okta's stock currently trading at just 23 times this year's expected earnings, Cramer sees it as a buying opportunity worth considering, despite the prevailing negative market sentiment, as its fundamentals remain strong.
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Analyst Views on OKTA
Wall Street analysts forecast OKTA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OKTA is 114.03 USD with a low forecast of 75.00 USD and a high forecast of 145.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
31 Analyst Rating
22 Buy
8 Hold
1 Sell
Moderate Buy
Current: 88.180
Low
75.00
Averages
114.03
High
145.00
Current: 88.180
Low
75.00
Averages
114.03
High
145.00
About OKTA
Okta, Inc. is an independent identity partner. The Company’s Okta Platform and Auth () Platform enable its customers to securely connect the right people to the right technologies and services at the right time. It offers independent and neutral cloud-based identity solutions that allow customers to integrate with nearly any application, service or cloud that they choose through its platforms. Organizations use the Company’s Identity Platform to collaborate with their partners, and to provide their customers with secure experiences in the cloud and via mobile devices. Developers leverage the Workforce Identity Cloud and Customer Identity Cloud, powered by Auth (), to securely and efficiently embed identity into the software they build, allowing them to innovate and focus on their core missions. Its Okta Platform enables its customers to automate and secure access across their ecosystem of employees, contractors and partners, increasing collaboration across their workforces.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Declining Market Attention: Despite Okta's strong performance in identity verification and solid results over the past few quarters, its stock has fallen over 30% from its May highs, indicating market neglect that could undermine investor confidence.
- Low Earnings Growth Expectation: Okta is projected to have only 7% earnings growth this year, which has kept it off Jim Cramer's recommended list, reflecting a cautious market outlook on its future performance.
- AI Security Opportunity: CEO Todd McKinnon highlighted a significant opportunity for Okta in securing thousands, if not millions, of AI agents being created within enterprises, a perspective that resonated with Cramer and could drive future growth for the company.
- Attractive Valuation: With Okta's stock currently trading at just 23 times this year's expected earnings, Cramer sees it as a buying opportunity worth considering, despite the prevailing negative market sentiment, as its fundamentals remain strong.
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Okta Viewed as Potential Undervalued Stock by Cramer
- Declining Market Attention: Despite Okta's strong performance in identity verification and solid results over the past few quarters, its stock has fallen over 30% from its May highs, indicating market neglect that could undermine investor confidence.
- Low Earnings Growth Expectation: Okta is projected to have only 7% earnings growth this year, which has kept it off Jim Cramer's recommended list, reflecting a cautious market outlook on its future performance.
- AI Security Opportunity: CEO Todd McKinnon highlighted a significant opportunity for Okta in securing thousands, if not millions, of AI agents being created within enterprises, a perspective that resonated with Cramer and could drive future growth for the company.
- Attractive Valuation: With Okta's stock currently trading at just 23 times this year's expected earnings, Cramer sees it as a buying opportunity worth considering, despite the prevailing negative market sentiment, as its fundamentals remain strong.
See More
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- Innovative Digital Experience: Both organizations will explore innovative ways to leverage AI technology to enhance user engagement, with Okta's solutions providing the necessary resilience and scalability to support PGA members at every digital touchpoint.
- Market Potential Assessment: While Okta is viewed as a promising investment, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, prompting investors to carefully evaluate market dynamics.
See More
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- Emerging Legal Challenges: Prediction markets indicate a 74% probability that a Moltbook AI agent will sue a human by February 28, which could compel the U.S. legal system to confront the liability boundaries of AI agents, potentially impacting future legal frameworks.
- Liability Grey Zone: If an AI agent acts autonomously to 'attack'—such as defaming or spending funds without human intervention—the ambiguity in liability could disrupt the legal responsibility chain, posing risks to corporate liability shields.
- Security Vulnerabilities Exposed: Moltbook has leaked over 6,000 emails and private messages due to a lack of identity verification, blurring the lines between 'bots' and 'humans', and if hackers gain control of an agent, attributing legal responsibility becomes extremely challenging, heightening the need for regulatory oversight of AI agents.
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