3 Big Reasons Okta's Stock Recently Imploded
Despite the rapid growth of Okta's (NASDAQ: OKTA) end market of access and identity management, investors have aggressively sold the stock so far this year. Unfortunately, things didn't get any better after the company released its earnings results for the second quarter of fiscal 2023, as investors dropped the stock by nearly 34%.
Here are three reasons Okta's stock imploded after the earnings results were released.
The risk of investing in high-growth unprofitable companies rises dramatically when the Federal Reserve raises interest rates, as it becomes much more challenging for these companies to raise the capital they need to grow. As a result, investors, uncomfortable with increased risk, will often sell unprofitable companies once they believe the Federal Reserve plans to raise interest rates aggressively.
Source Fool.com
