As companies get larger, growth rates tend to slow, even for high-growth tech stocks. It's what investors call the law of large numbers. For example, when a company grows $50 million over the course of a year on a base of $100 million, it's a 50% year-over-year growth rate. But if it grows another $50 million in the following year, it's only a 33% growth rate. On a Motley Fool Live episode recorded on June 16, Fool.com contributors Brian Stoffel and Brian Withers discuss Okta's (NASDAQ: OKTA) slowing growth and provide some perspective for investors on this identity-management specialist.
Source Fool.com