Okta: On The Path To A Rebound, Keep Holding On For Upside
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Okta's stock has been downgraded from a strong buy to a buy rating despite a strong Q3 earnings beat with 14% year-over-year revenue growth. However, concerns remain over waning net revenue retention rates and potential pressure from the U.S. federal government on headcount growth.

December 08, 2024 | 1:45 pm
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Okta's stock has been downgraded from a strong buy to a buy rating. The company reported a strong Q3 earnings beat with 14% y/y revenue growth, but net revenue retention rates are declining. The U.S. federal government's influence may impact headcount growth.
The downgrade from strong buy to buy reflects a cautious stance despite strong earnings, due to concerns over declining net revenue retention and potential headcount growth issues related to U.S. federal government deals.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100