In this article, we will compare Okta Inc. ( NASDAQ: OKTA ) to other high growth cybersecurity stocks to buy.
The cybersecurity industry is experiencing unprecedented growth, fueled by increasing cyber threats, the expansion of cloud computing, and the adoption of artificial intelligence ( AI ) in security measures. Global crime damages are projected to rise to$ 10 trillion annually by 2025, upward from$ 3 trillion in 2015, making security one of the most crucial sectors in the modern era. As attacks grow in speed and intelligence, businesses, governments, and individuals are investing heavily in security solutions to lessen risks.
The global cybersecurity market is expected to grow from$ 172.24 billion in 2023 to$ 562.72 billion by 2032, reflecting a compound annual growth rate ( CAGR ) of approximately 14.3 %, according to a report by Fortune Business Insights. This rapid growth is driven by increased saving across sectors, particularly in industries such as finance, medical, and state, where data protection is paramount.
The fall of ransomware attacks has heightened the demand for security solutions. Ransomware problems have significantly increased in recent years, with 2024 marking a record high of 5, 263 incidents—the highest level observed since 2021 according to a new report from security consulting firm, NCC Group. Big companies and critical equipment are the targets, with some ransom payments reaching tens of millions of dollars. For example, Colonial Pipeline paid$ 4.4 million in Cryptocurrency following a damaging attack in 2021, underscoring the necessity of strong safety measures.
Additionally, spending on sky security is growing exponentially. According to Gartner, global information security end-user spending is projected to total$ 212 billion in 2025, marking a 15.1 % increase from$ 183.9 billion in 2024. The incorporation of artificial intelligence ( AI ) into cloud infrastructures is a significant contributor to more money spent on cloud security. A recent survey in the 2025 Cloud &, AI Index indicates that 89 % of U. S. IT decision-makers plan to boost their cloud budgets in 2025, primarily to support AI workloads
A significant talent shortage continues to be a concern for the security sector. According to the 2023 ISC2 Cybersecurity Workforce Study, the global security workplace reached 5.5 million experts, an 8.7 % increase from the previous year. Despite this expansion, the research found that there was a 4 million professional workforce gap that was required to adequately protect an organization’s most important possessions.
We used a stock screener to compile a list of the Top 10 High Growth Cybersecurity Stocks to Buy in order to find businesses with a market capitalization of more than$ 2 billion and at least 20 % revenue growth over the past five years. From this variety, we finally narrowed down the top 10 companies based on the level of wall fund interest. As of Q4 2024, these companies have been ranked in accordance with hedge fund attitude.
Why are we drawn to the companies that stock funds invest in? Our research has demonstrated that by imitating the best hedge funds ‘ major stock picks, we can outperform the market. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4 % since May 2014, beating its benchmark by 218 percentage points ( ).
A portable program programmer programming on a tablet, illustrating the power of the bank’s dynamic multi-factor authentication.
Variety of Hedge Fund Holders: 72
Okta, Inc. ( NASDAQ: OKTA ) is a leading independent identity provider offering secure, cloud-based identity solutions for businesses. Its Okta Identity Platform enables smooth integration with different programs, services, and sky environments. One of the best high rise companies on our list is OKTA.
In a move that aims to strengthen its senior management as it focuses on scaling rise, the organization appointed Eric Kelleher as President and COO in February. Simultaneously, Okta, Inc. ( NASDAQ: OKTA ) announced a workforce reduction of approximately 180 employees ( 3 % of its workforce ) as part of a broader restructuring effort to optimize resources and align with long-term priorities. These strategic shifts suggest that the business is putting a premium on business leadership and administrative efficiency, positioning itself for sustained development in the changing cybersecurity landscape.
Okta, Inc. ( NASDAQ: OKTA ) delivered a strong performance in its full-year fiscal 2024 results. Total revenue grew 22 % YoY to$ 2.26 billion, with subscription revenue climbing 23 % YoY to$ 2.21 billion. The company made notable progress in profitability, reporting a GAAP operating loss of$ 516 million, a marked improvement from the$ 812 million loss in fiscal 2023. Cash flow generation was a standout, with operating cash flow reaching$ 512 million ( 23 % of revenue ) and free cash flow at$ 489 million ( 22 % of revenue ), both showing massive gains from$ 86 million and$ 65 million, respectively, in fiscal 2023.
The stock has remained a Hold rating while Barclays analyst Saket Kalia raised the price target from$ 96 to$ 105, which indicates a 15.5 % increase from the current levels.
On our list of high-growth security companies to buy, OKTA comes in third total. While we support OKTA as an investment, we are of the opinion that some AI companies have greater potential for delivering higher earnings and doing so more quickly. Check out our report on the cheapest AI investment if you’re looking for one that is more appealing than OKTA but trades for less than 5 times its income.
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