Cybersecurity Sector Ideas

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Okta - >>> 3 Growth Stocks for the Next 10 Years and Beyond

Fast-growing businesses with plenty more growth to come.


Motley Fool

by Rich Duprey

Jul 13, 2021


https://www.fool.com/investing/2021/07/13/3-growth-stocks-for-the-next-10-years-and-beyond/


Fastly's outage dovetails nicely with the next stock, cybersecurity expert Okta (NASDAQ:OKTA), which offers cloud-based identity verification solutions by providing tools for controlling access to corporate networks.

Much like CDN is necessary for businesses delivering the content to end users, the nature of cloud-based data makes securing it even more important. Using artificial intelligence for systems that are based in the cloud, Okta is able to quickly offer security solutions in excruciatingly granular detail that grow increasingly adept at identifying threats to a network. But perhaps more important is that as its customers grow in size, Okta's technology can scale upwards as well.

And Okta's business is scaling up, too. With over 10,000 customers worldwide, revenue for the first quarter of fiscal year 2022 jumped 37% from last year while subscription revenue grew fast at 38%. That recurring revenue stream will eventually enable this cybersecurity stock to turn profitable.

Yes, Okta is currently posting losses, and forecasts it will continue to do so for at least the coming year, but with an $80 billion total addressable market, it will be able to grow into profits while providing investors remarkable returns for the next decade or more.

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