Labeling itself "The World's Identity Company," cybersecurity leader Okta continues to build on its partnership with Amazon.com subsidiary Amazon Web Services. After getting named the AWS Global Marketplace Partner Of The Year, Okta has just hit $1 billion in aggregate sales over the past four years in the AWS Marketplace.
And aided by a budding rebound in the Nasdaq, Okta stock has also just secured a breakout into buy range. It's also landed a spot on the IBD Breakout Stocks Index.
Okta Leads Strong Cybersecurity Group
Based in San Francisco, Okta has a global footprint in the cybersecurity space. Its two pillars are the Okta Platform and the Auth0 Platform.
The Okta platform enables essential cybersecurity functions such as single sign on, multifactor authentication, identity threat protection. In the artificial intelligence realm and beyond, Auth0 helps secure generative artificial intelligence apps and adaptable authentication.
Through Okta AI, the company helps protect clients against cyberattacks while enabling real-time actions and insights.
Sporting a stellar 98 Composite Rating, Okta stock stands among the top cybersecurity stocks to watch. Other leaders include Fortinet, Zscaler, Palo Alto Networks and Check Point Software. The group ranks a strong No. 10 out of the 197 industries Investor's Business Daily tracks.
See Who Joins Okta On The IBD Breakout Stocks Index
Okta Stock Breaks Out As Amazon Resets
As cybersecurity peer Check Point trades near its record high, shares of Okta continue to recover from a multiyear slump that started in 2021. Okta established a bottom in October 2022, followed by a bumpy mix of sideways and sometimes-upward action.
On March 3, the company beat analyst estimates on earnings and sales for the fourth quarter. Okta stock popped on the news, jumping back above its 10-week moving average. The move sparked what would become more than a 24% gain for the week.
Showing strength, the cybersecurity leader has since held and added to those gains. That built on a positive change in trend when Okta's 10-week line climbed back above its 40-week benchmark back in February.
Trying to weather the current market correction, Okta has floated in and out of buy range after first clearing a 114.50 buy point earlier this month. The stock remains right around the initial entry. While Okta fell Wednesday as the Nasdaq retreated, the cybersecurity stock remains on pace for a fourth straight week of tight closes.
Signs of demand for Okta include an A- Accumulation/Distribution Rating and a 1.7 up/down volume ratio.
Meanwhile, fellow cybersecurity stocks Fortinet and Palo Alto Networks continue to test their 50-day lines as Zscaler tries to decisively break through resistance around the 215 mark. After a sharp drop from a record high in February, Amazon stock looks to regroup and rebound after retaking its 10-week moving average.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
