Okta (OKTA): AI Identity Security & Valuation Concerns

Okta recently highlighted AI identity security during a special call, alongside recognition for its collaboration with Master Concept in Asia. This puts a spotlight on how identity security works within complex cloud and AI environments. Okta's research shows enterprises are increasingly using multiple AI providers, but often lack clear visibility into which AI agents access their systems and data. What's interesting is Okta's recent AI focus comes after strong momentum, with a 30-day share price return of over 32% and a 90-day return of over 106%. However, long-term holders have faced a different experience, with a five-year total shareholder return decline of over 42%. While one narrative suggests a fair value of $151, the stock's current P/E ratio is 105.1 times, much higher than the US IT industry average of 18.6 times. This indicates different views on its current valuation.