Cybersecurity player Okta (OKTA) popped following its investor day on Wednesday, where management laid out plans to expand into new markets. Okta stock has been in the doghouse over its pricey acquisition of Auth0 in early March.
The company said it will expand into two new cybersecurity markets, taking on CyberArk Software (CYBR) and SailPoint Technologies (SAIL). Okta’s new products should be available in early 2022, the company said.
“Okta’s analyst day and user conference largely centered around their expansion into adjacent markets within broader Identity and Access Management,” Okta stock analyst Hamza Fodderwala of Morgan Stanley said in a note to clients.
“This included new product announcements in Identity Governance, where SailPoint is a market leader and integration partner of Okta, as well as Privileged Access Management, signaling increased competition with CyberArk,” Fodderwala went on to say.
Okta Stock Up, Was Hit By Auth0 Deal
Okta stock jumped 6.7% near 237.50 in afternoon trading on the stock market today. The San Francisco-based company’s software monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
In March, Okta announced the acquisition of Auth0 in a $6.5 billion all-stock deal. Founded in 2009, Okta will give up about 14% of its equity to buy Auth0. Bellevue, Wash.-based Auth0’s tools help software developers build identity authentication capabilities into applications.
Including Auth0, Okta said it expects revenue to grow more than 35% annually through fiscal 2024.
Okta stock holds a Relative Strength Rating of only 33 out of a best possible 99. Shares trade well below an entry point of 287.45.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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