Why Okta Stock Lost 22% in September
Okta (NASDAQ: OKTA) investors lost ground to the market last month as the stock declined 22% compared to a 2% increase in the S&P 500, according to S&P Global Market Intelligence. The drop removed only a small portion of the tech stock's outperformance, though, and shares remain higher by over 80% so far in 2019.
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September's swoon followed strong third-quarter earnings results by the identity-management software specialist that nevertheless disappointed some investors. Okta revealed in late August that sales jumped 49% to again blow past management's guidance. The company remained in net loss territory but improved its cash burn to $1 million, or 1% of revenue from $5 million, or 6% of revenue last year. Investors may have focused on those losses in choosing to sell the stock last month, and that pressure appears to have been increased by a new debt issuance.
Source Fool.com
