We recently published a list of 10 Stocks Wall Street is Talking About These Days. In this article, we are going to take a look at where Okta, Inc. (NASDAQ:OKTA) stands against other stocks Wall Street is talking about these days.
Gene Muster from Deepwater Asset Management said in a recent interview with CNBC that investors should take a “targeted” approach while investing in major tech companies and look for “pockets” of opportunities.
“I think that when you answer the question more holistically, there’s still—if you look at, uh, we looked at 20 different companies, tech companies, and their reporting season and graded each of them—and of the six Mag Seven, five of the six we gave an A grade, and so there’s still this outperformance that you’re seeing with the fundamentals on these companies, but that doesn’t mean that the best opportunities to invest is necessarily with them, and so again, more of a targeted approach.”
Munster also talked about some major tech companies and said he believes Jensen Huang’s AI chip giant is still “cheap” when it comes to its stock price. However, the analyst advised investors to look for smaller companies:
“You have to be uh strategic in terms of what you’re buying. If you wanted to buy a basket, I would buy a basket of smaller tech companies, sub 500 billion dollars, and focus on those. It’s probably where your bigger outperformance is.”
For this article, we picked 10 stocks currently making moves on Wall Street. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
Okta, Inc. (NASDAQ:OKTA)
Number of Hedge Fund Investors: 47
A caller recently asked Jim Cramer about his thoughts on Okta, Inc. (NASDAQ:OKTA). Here is what Cramer said:
“I think Okta is terrific. It’s one of the greatest companies. I’ll tell you, anybody who works there has a great time and they have done remarkable things. And Todd McKinnon (CEO) is terrific and so is cyber security. Anti-stops, this one is a winner.”
Sands Capital Select Growth Fund stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its Q4 2024 investor letter:
“We decided to exit our position in Okta, Inc. (NASDAQ:OKTA) in favor of higher-conviction businesses. We initiated a position in Okta in December 2023, following a data breach that depressed the share price of the business. At that time, our research indicated that shares of the business presented an attractive risk-reward opportunity, as a long-term business impairment from the data breach was unlikely, and Okta remained a key provider of technology within a market—identity—that is large, growing, and consolidating amid private equity buyouts. Moreover, we saw potential tailwinds from changes to its go-to-market strategy and new product cycles.
Over our holding period, Okta delivered significant margin expansion, yet topline growth failed to accelerate. Similar to many software businesses, it continues to face the challenges of weak labor force trends for small and midsized businesses that are forcing clients to renew at lower seat counts, and management has failed to execute well enough to offset these headwinds. While we still see the potential for the business to accelerate growth, we chose to exit our position to fund holdings in businesses we have more confidence will execute on their growth potential.”
Overall, OKTA ranks 8th on our list of stocks Wall Street is talking about these days. While we acknowledge the potential of OKTA our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OKTA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
