Okta, Inc.’s (NASDAQ:OKTA) 32% Price Boost Is Out Of Tune With Revenues
Okta, Inc. (NASDAQ:OKTA) shares have had a really impressive month, gaining 32% after a shaky period beforehand. Taking a wider view, although not as strong as the last month, the full year gain of 23% is also fairly reasonable.
Following the firm bounce in price, when almost half of the companies in the United States’ IT industry have price-to-sales ratios (or “P/S”) below 2.5x, you may consider Okta as a stock not worth researching with its 8x P/S ratio. However, the P/S might be quite high for a reason and it requires further investigation to determine if it’s justified.
Our free stock report includes 1 warning sign investors should be aware of before investing in Okta. Read for free now.
