Okta Earnings: The Comeback Continues With Improved Execution as Macro Pressures Gradually Subside

We are maintaining our $100 fair value estimate for no-moat Okta after the firm kicked off fiscal 2025 with a set of robust financial results and guidance. While security breaches and a poorly executed acquisition of Auth0 have damped Okta's glow to many investors, we were encouraged by the firm's ability to steady its ship by emphasizing strong execution and rebuilding investor trust in the firm. With shares trading up slightly after hours, we view Okta as fairly valued. For investors seeking cybersecurity exposure, we'd recommend wide-moat Palo Alto and Fortinet as better companies to invest in than no-moat Okta.