Cybersecurity platform Okta (OKTA) is on the mend. The stock traded in the $70 to $78 range since September and then broke out on December 4, rising by 5.38% and closing at $86.11. The firm posted strong third-quarter results.
Okta reported solid revenue growth of 13.9% Y/Y, to $665 million. It earned $0.67 a share (non-GAAP. In Q4, it expects an operating margin of 23% and non-GAAP EPS of $0.73 - $0.74, above analyst estimates. Expect a strong demand for identity management to support Okta’s pipeline. The firm demonstrated strong customer conversions last quarter. It has the momentum to continue through next year.
Salesforce (CRM) gained 10.99% to close at a high for this year, lifting the Dow to above 45,000. The firm increased revenue by 8.3% year over year to $9.44 billion. The software company is implementing AI among its products, driving demand higher.
Canada’s Royal Bank (RY) rallied strongly before closing up by 0.5% on Wednesday. In addition to raising its dividend by 4.2% to C$1.48, the firm achieved an 18.8% Y/Y revenue growth in Q3, to C$15.07 billion. Its acquisition of HSBC is adding meaningfully to its business.
Having the best ROE among the global banks that sets RY stock apart from the rest. In the long term, an ROE of 16% or more is achievable.
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