OKTA JOINS THE S&P 500, BUT AT WHAT COST? Okta $OKTA is joining the S&P 500 $SPY, replacing Kenvue $KVUE following its pending acquisition by Kimberly-Clark $KMB. Okta is a strong cybersecurity company specializing in identity management, with revenue growing 11% YoY, a 13% GAAP operating margin, and a 28% free cash flow margin. However, trading at roughly 11-12x sales with a beta of 0.73 versus Kenvue’s 0.45, I believe Okta remains expensive and introduces additional volatility into the index. This reflects a broader trend of the S&P 500 becoming increasingly exposed to growth stocks with premium valuations, so don’t be surprised if market swings become much sharper in both directions.

Okta $OKTA and Shopify $SHOP lead Net IV Up this morning at +535.15 and +506.39 vol pts, meaning call volatility is being repriced much higher versus puts and traders are paying up for upside movement. See the full options dashboard and start a free 3-day trial at

OKTA $OKTA JUST REPORTED Q2 EARNINGS - Revenue: $805M, beating expectations of $795M 🟢 - Adjusted EPS: $1.05, beating expectations of $0.97 🟢 - Subscription revenue: $793M - Net income: $116M - GAAP EPS: $0.65 Q3 guidance: - Revenue: $813M-$817M - Adjusted EPS: $0.92-$0.94 Full year guidance: - Revenue: $3.216B-$3.226B

$OKTA | BMO Capital 𝗺𝗮𝗶𝗻𝘁𝗮𝗶𝗻𝘀 𝗢𝘂𝘁𝗽𝗲𝗿𝗳𝗼𝗿𝗺 on 𝗢𝗸𝘁𝗮, 𝗜𝗻𝗰., raises PT to $𝟮𝟯𝟬 from $𝟭𝟴𝟳 Analyst sees an expanding identity TAM and Okta's AI portfolio driving additive growth, share gains, and new-logo wins.