Okta (OKTA) Showed Promising Start to 2025

White Brook Capital Partners, an investment management firm, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. White Brook Capital’s middle capitalization focused fund had a forgettable year in 2024.  With the announcement of fourth-quarter earnings and positive 2025 outlook by the fund’s portfolio companies, fortunes have turned around thus far in 2025. The portfolio’s dominant theme is that it owns quality businesses in sectors that for one reason or another are out of favor. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

White Brook Capital Partners highlighted stocks like Okta, Inc. (NASDAQ:OKTA), in the fourth quarter 2024 investor letter. Okta, Inc. (NASDAQ:OKTA) is an identity partner that offers Okta’s suite of products and services used to manage and secure identities. The one-month return of Okta, Inc. (NASDAQ:OKTA) was 15.36%, and its shares gained 6.47% of their value over the last 52 weeks. On January 27, 2024, Okta, Inc. (NASDAQ:OKTA) stock closed at $90.90 per share with a market capitalization of $15.58 billion.

White Brook Capital Partners stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its Q4 2024 investor letter:

“Okta, Inc. (NASDAQ:OKTA) was basically unchanged from where we bought it in 2024, although its had a good start to 2025. Okta’s products are used by customers and consumers to manage and secure identities. I believe we acquired shares at an attractive price and look forward to publishing a write up early this year.”

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A mobile application developer programming on a tablet, illustrating the power of the company’s adaptive multi-factor authentication.

Okta, Inc. (NASDAQ:OKTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Okta, Inc. (NASDAQ:OKTA) at the end of the third quarter which was 50 in the previous quarter. While we acknowledge the potential of Okta, Inc. (NASDAQ:OKTA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Okta, Inc. (NASDAQ:OKTA) and shared the list of best cybersecurity stocks to buy according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.