Okta, Inc. | $OKTA) Stock | Shares Shoot Up on Better than Expected Fiscal Q1 Earnings

Okta, Inc.

Okta, Inc. (NASDAQ: OKTA)



Okta, Inc. (OKTA), a company that operates an integrated system that connects persons via devices yesterday  reported their fiscal first quarter 2018 financial results. Okta reported a first quarter earnings of a loss of $28.9 million.

Okta reported first quarter adjusted earnings of a loss of $0.50 per share which beat analyst expectations of a loss of $0.62 per share. Okta reported first quarter revenues of $53 million which beat analyst expectations of $48 million. Okta forecasts revenues to be in between $55 million and $56 million for the fiscal second quarter.


Okta, Inc. CEO’s  Comments

“In our first quarter as a public company, we demonstrated strength by every measure. Total revenue grew by 67%, subscription revenue grew by 75%, and our operating performance improved significantly, year-over-year,” said Todd McKinnon, CEO of Okta.  “Our strong results were driven by our industry-leading products, the success we enable for our customers’ digital initiatives and the need for every organization to manage their business securely in the cloud.  With the Okta Identity Cloud, we are well positioned to capitalize on two large and growing markets: the $18 billion addressable market for management of employee identities, as well as the largely greenfield market for organizations looking to seamlessly and securely manage the identities of their customers, partners and suppliers.”  Globe Newswire


OKTA Technical Analysis

OKTA opened trading yesterday at $25.39 which was up from the previous day’s trading close of $24.85. OKTA closed trading yesterday at $25.69 and spiked up after market to $27.60, equivalent to a 7% increase from the closing price. Taking a look at the daily chart we can see that we are in unchartered territory as with the spike up OKTA is now trading at all time highs.

Taking a closer look at the daily chart we can see that before the spike up OKTA had already been in an overall upward trend dating back to May 17th when it traded at $22.91. OKTA has a float of 32.11 million shares and traded 20.25 times the normal daily trading volume on Wednesday.

For trading purposes, I would like to see OKTA open trading on Thursday above $27.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Okta, Inc. operates an integrated system that connects persons via devices. The company’s identity cloud connects various companies to pre-integrated apps and devices every day. It offers single sign-on, mobility management, adaptive multi-factor authentication, lifecycle management, and universal directory products for IT customers; and complete authentication, user management, flexible administration, API access management, and developer tools for developers. The company is headquartered in San Francisco, California.  Yahoo Finance