Robust Results Lifted Okta (OKTA) in Q1

Sands Capital, an investment management company, released its “Sands Capital Technology Innovators Fund” Q1 2025 investor letter. A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant long-term changes driven by technology. The fund returned -10.4% (net) in the first quarter compared to a 9.4% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. The choice of securities in the software sector was the primary factor negatively impacting relative performance. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its first-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Okta, Inc. (NASDAQ:OKTA). Okta, Inc. (NASDAQ:OKTA) is an identity partner that offers products and services to manage and secure identities. The one-month return of Okta, Inc. (NASDAQ:OKTA) was -1.52%, and its shares gained 14.63% of their value over the last 52 weeks. On May 27, 2025, Okta, Inc. (NASDAQ:OKTA) stock closed at $125.50 per share with a market capitalization of $21.971 billion.

Sands Capital Technology Innovators Fund stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its Q1 2025 investor letter:

“Okta, Inc. (NASDAQ:OKTA) is the leading independent provider of enterprise identity and access management software, based on revenue and integrations. The business reported strong quarterly results, highlighted by reaccelerating growth of current remaining performance obligations (cRPO), an indicator of near-term revenue recognition for software businesses. cPRO was up 15 percent year-over-year, marking a 230 basis point acceleration quarter-over-quarter and the fastest year-over-year growth in four quarters. Quarterly bookings eclipsed $1 billion in total contract value for the first time, and new products accounted for 20 percent of the quarter’s bookings. We believe the business’ broadening product suite is helping Okta improve execution on its top strategic focus on enterprise customers.”

Jim Cramer Thinks Okta, Inc. (OKTA)‘s “Numbers Will Be Tremendous”

A mobile application developer programming on a tablet, illustrating the power of the company’s adaptive multi-factor authentication.

Okta, Inc. (NASDAQ:OKTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Okta, Inc. (NASDAQ:OKTA) at the end of the first quarter, which was 72 in the previous quarter. While we acknowledge the potential of Okta, Inc. (NASDAQ:OKTA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Okta, Inc. (NASDAQ:OKTA) and shared the list of stocks Wall Street is talking about. Sands Capital Select Growth Fund exited its stake in Okta, Inc. (NASDAQ:OKTA) in Q4 2024. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.