Why did Okta (Okta) stock fall 97%?

Shares of identity management software maker Okta (OKTA) fell 9.7% in the afternoon session after the company reported first-quarter earnings and provided calculated remaining performance obligations (cRPO - leading revenue indicator) for the next quarter, which fell below Wall Street's expectations.

Is Okta a good investment?

Okta is up 4.1% since the beginning of the year, but at $90.46 per share it is still trading 18.9% below its 52-week high of $111.49 from March 2024. Investors who bought $1,000 worth of Okta's shares 5 years ago would now be looking at an investment worth $849.53. Here at StockStory, we certainly understand the potential of thematic investing.

Does Okta's earnings estimate change with near-term stock price movements?

This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Okta is expected to post earnings of $0.55 per share, indicating a change of +77.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.6% over the last 30 days.