Should I buy Okta stock?

**Okta's strong financial performance and growth outlook support a bullish sentiment**, and the stock's recent gain amid takeover speculation further highlights its potential. Here's an analysis to consider when deciding whether to buy Okta stock:

1. **Solid Financial Performance**: Okta reported a 12% year-over-year increase in total revenue and a 11.5% increase in the latest quarter. The company's net income grew by 255% and diluted EPS by 245.83%. These figures indicate robust growth and profitability.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|OKTA|OKTA.O|Okta|2025 Q2|126.12612612612612|16.18705035971223|122.05882352941177|185|
|OKTA|OKTA.O|Okta|2025 Q3|119.75308641975309|13.86986301369863|100|185|
|OKTA|OKTA.O|Okta|2025 Q4|152.27272727272728|12.727272727272727|150|185|
|OKTA|OKTA.O|Okta|2026 Q1|254.99999999999997|11.507293354943274|245.83333333333334|185|

2. **Positive Market Sentiment**: The stock's recent gain of 2.63% amid takeover speculation shows positive market sentiment. This could be due to increasing institutional interest and strong financial performance.
3. **Valuation Metrics**: Okta's price-to-earnings (P/E) ratio and price-to-sales (P/S) ratio are relevant in determining its valuation. The company's P/E ratio of 20.0 and P/S ratio of 5.4 suggest a reasonable valuation compared to its growth prospects.
4. **Technical Indicators**: Technical analysis indicators such as the Relative Strength Index (RSI) and moving averages can provide insights into the stock's momentum. Okta's RSI is at 64.81, indicating it is neither overbought nor oversold. The stock's moving averages are mostly bullish, with a buy signal from the 20-day exponential moving average and a sell signal from the 50-day simple moving average.

|code|Ticker|Name|Date|Boll|RSI|KDJ|MACD|market_code|
|---|---|---|---|---|---|---|---|---|
|OKTA|OKTA.O|Okta|20250730|96.0850|64.8144|60.8410|2.1309|185|

|code|Ticker|Name|Date|Moving Average|market_code|
|---|---|---|---|---|---|
|OKTA|OKTA.O|Okta|20250730|99.1180|185|

5. **Analyst Ratings**: The consensus among analysts is positive, with a current price target of $150, indicating potential for price appreciation.
6. **Fundamental Growth**: Okta's subscription engine and cash generation are strong, with a growing backlog and a trend towards headcount reductions in the tech industry, which could lead to improved margins and revenue growth.

In conclusion, considering Okta's strong financial performance, positive market sentiment, reasonable valuation, and bullish technical indicators, it appears to be a promising investment. However, it's important to align this decision with your investment strategy, risk tolerance, and portfolio diversification.