Okta Stock Rises. Is The Data Breach Sell-Off Over?
Okta stock rose on Tuesday, putting a possible halt to a sell-off sparked by a new data breach the cybersecurity firm announced last week.
The shares of Okta (OKTA), which were down on Monday, rose on Tuesday. This could have put an end to the sell-off that was sparked last week by a data breach announced by the cybersecurity company. Analysts expect that the incident will impact Okta's current quarter results.
Okta announced Friday that an unidentified hacking team had gained access to files uploaded by some Okta users into its support system. Data breach affected about 1% customers.
In a recent report, Brad Zelnick, an analyst at Deutsche Bank, said that "the Street's reaction (was) probably overblown."
The company stated that hackers gained access to the system by using stolen credentials. Okta's stock rose today by 3.7%, to 72. Okta's stock fell 17% between Friday and Monday.
Okta Stock: Sales Pipeline Impact?
Okta, a San Francisco-based company, specializes in identity authentication with software that manages and monitors privileged accounts. Hackers target people with administrative access on company computers, such as employees and management.
In a report, Jefferies analyst Joseph Gallo stated that "our early customer conversations indicate a low risk of material churn even though new business in the fiscal third quarter will be affected."
In March 2022 a hacking team called "Lapsus$", announced that it had gained access to Okta's systems. The group also posted screenshots of a computer that was used by a third-party Okta customer support engineer.