OKTA Should I Buy
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Okta Inc. is not a strong buy for a beginner, long-term investor at this moment. While the company has shown solid financial performance and has potential growth catalysts, the technical indicators are bearish, and the stock lacks strong upward momentum. Additionally, there are no significant proprietary trading signals to suggest an immediate buy opportunity. It may be better to wait for clearer signs of a positive trend or stronger catalysts before investing.
The technical indicators for OKTA are bearish. The MACD is negatively expanding, the RSI is neutral at 40.677, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below the pivot level of 85.063, with key support at 81.211 and resistance at 88.915. The pre-market price of $84.7 reflects a slight decline of -0.25%.
Analysts have raised price targets recently, with RBC Capital and Piper Sandler highlighting potential AI tailwinds and enterprise spending stabilization in
Okta's partnership with the PGA of America demonstrates its focus on expanding AI-driven security solutions.
Financial performance in Q3 2026 showed strong revenue growth (11.58% YoY) and a significant increase in net income (168.75% YoY).
The broader software sector has faced a $2 trillion loss due to concerns over AI disruptions, which has negatively impacted Okta's stock price.
The MACD and moving averages suggest a bearish trend, with no clear upward momentum.
Analysts like Susquehanna and Citi have lowered price targets, citing balanced risk/reward and limited upside potential.
The stock has fallen over 30% recently, and low earnings growth expectations have kept it off recommended lists like Jim Cramer's.
In Q3 2026, Okta reported revenue of $742 million, up 11.58% YoY. Net income increased significantly to $43 million, up 168.75% YoY. EPS remained stable at 0.25 YoY, and the gross margin improved to 77.09%, up 0.92% YoY. These results indicate strong financial performance and improving profitability.
Analysts have mixed views on Okta. RBC Capital raised its price target to $108 and maintains an Outperform rating, citing AI tailwinds and enterprise spending stabilization. Piper Sandler raised its target to $100 but remains Neutral, while Jefferies upgraded Okta to Buy with a $125 target, citing value dislocation and growth opportunities. However, firms like Susquehanna and Citi have lowered targets, citing balanced risk/reward and limited upside potential.
