Stock of the Week: Okta

An app that isn’t likely to be deleted any time soon. 

Andrew Willis 29 November, 2021 | 5:08AM
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Andrew Willis: When COVID hit last March, we left our offices and took our work home – where we were physically safer. But from a digital standpoint, we made ourselves more vulnerable. When you leave the protective cyber cocoons of a dedicated and isolated internet connection that has restricted access, you encounter evils like ransomware, and identity fraud – which nearly doubled over the course of the pandemic.

We believe that identity is a cornerstone of cybersecurity. Just like you have access cards at the office, organizations in this cloud-based world need a ‘distinct security perimeter’ as senior equity analyst Mark Cash puts it. And it's why we see significant growth ahead for Okta.

We forecast forty-one percent compound annual growth for OKTA over the next five years as more employees get signed onto these apps to access their work environments.

Which for investors, brings us to one of the best parts of today’s security app business. In a hybrid-cloud world, we expect customers continue to prefer solutions that are built in that cloud, externally, and purchased, instead of made in-house – and you can bet that when that layer of security is added it won’t be removed any time soon.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Okta Inc A184.24 USD4.92Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor for Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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