Sell-off Alert on Okta

Last night, Okta (OKTA) posted fiscal first-quarter results. Although revenue grew by 11.5% Y/Y to $688 million, after-hours traders did not like this cybersecurity firm’s outlook.Okta earned 86 cents a share. In Q2, it expects revenue of $710 million to $712 million. The 10% Y/Y growth rate is not high enough. Okta has a prudent approach in its outlook. As a result, it did not change its guidance for this fiscal year. Okta CEO Todd McKinnon cited the need for conservatism. He wants to consider some of the macro uncertainties ahead. Still, Okta is in a good position to dominate the identity security market.For the full year, Okta is forecasting earnings of $3.23 to $3.28 per share. Revenue will come in at between $2.85 billion and $2.86 billion.Cautious investors reduced their position in response. However, long-term shareholders may weather the uncertainties by accumulating shares. Okta beat expectations for the quarter. It is likely too cautious in its outlook, as identity management solutions grow.In the technology sector, investors will watch Nvidia (NVDA), Salesforce (CRM), HP (HPQ), Dell (DELL), Marvell Technology (MRVL), and UiPath (PATH). Among them, Salesforce is due for a stock rebound if it beats estimates. Dell has a strong presence in the AI server market along with the PC market. Watch DELL stock today.