Okta Shares Still Look Overvalued, Even After Plummeting Lower Recently

Shares of cloud identity-management company Okta (NASDAQ: OKTA) have provided investors with disastrous returns over the last three years that were made worse by a huge sell-off in the stock following the tech company's fiscal second-quarter earnings report. Shares are down more than 20% since the Aug. 28 report.Though it might be tempting to buy the dip in this growth stock, investors may want to think twice before they do. This may be a growing company, but that doesn't mean shares will appreciate meaningfully in the coming years. With a market capitalization of about $13 billion at the time of this writing, the company's underlying fundamentals fail to live up to its valuation.Okta's fiscal 2025 second-quarter revenue increased 16% year over year to $646 million, management reported to investors last week. This was driven by a 17% year-over-year increase in its subscription revenue (98% of total revenue).Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool