2 Reasons to Buy Okta and 1 Reason to Sell
Wall Street was thrilled with the latest operating update from Okta (NASDAQ: OKTA). The cybersecurity specialist beat growth expectations despite weakening IT spending in many markets. Cost cuts are helping push Okta back toward profitability and at a much faster pace, too.
But there are still some big risks involved with owning this stock. Let's take a look at the biggest one, along with a few good reasons to buy Okta shares now.
Okta just went a long way toward erasing one of Wall Street's biggest worries: that losses would continue well into the future. This fear was heightened when the company announced back in late August that non-GAAP (adjusted) operating losses were $15 million, or 3% of sales. The company at the time projected losses on this basis of over $100 million for the full year. The picture looked even worse for losses calculated in terms of generally accepted accounting principles (GAAP), which were near $500 million through the first half of fiscal 2023.
Source Fool.com
