Okta, Inc.'s (NASDAQ:OKTA) 32% Price Boost Is Out Of Tune With Revenues
May 09
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U.S. IT Industry Analysis
UpdatedMay 11, 2025
DataAggregated Company Financials
Companies103
- 7D0.5%
- 3M-15.1%
- 1Y21.6%
- YTD-1.7%
Over the last 7 days, the IT industry has remained flat, although notably Shopify declined by 7.5%. The past year has been better, since the industry has gained 22% in that time. As for the next few years, earnings are expected to grow by 16% per annum.
Industry Valuation and Performance
Has the U.S. IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 11 May 2025 | US$862.7b | US$239.1b | US$16.7b | 30.7x | 51.7x | 3.6x |
| Tue, 08 Apr 2025 | US$779.0b | US$242.3b | US$18.5b | 31.2x | 42.2x | 3.2x |
| Thu, 06 Mar 2025 | US$927.9b | US$240.0b | US$18.1b | 41.4x | 51.3x | 3.9x |
| Sat, 01 Feb 2025 | US$968.9b | US$234.3b | US$16.0b | 44.1x | 60.7x | 4.1x |
| Mon, 30 Dec 2024 | US$869.4b | US$234.7b | US$16.7b | 40.8x | 52.1x | 3.7x |
| Wed, 27 Nov 2024 | US$889.8b | US$233.1b | US$16.3b | 47.5x | 54.7x | 3.8x |
| Fri, 25 Oct 2024 | US$815.6b | US$232.9b | US$15.7b | 43.1x | 51.8x | 3.5x |
| Sun, 22 Sep 2024 | US$775.4b | US$233.3b | US$17.5b | 40.3x | 44.3x | 3.3x |
| Tue, 20 Aug 2024 | US$745.7b | US$232.8b | US$17.5b | 35.3x | 42.5x | 3.2x |
| Thu, 18 Jul 2024 | US$754.9b | US$236.9b | US$17.2b | 28.9x | 43.9x | 3.2x |
| Sat, 15 Jun 2024 | US$676.8b | US$237.2b | US$17.3b | 27.4x | 39.2x | 2.9x |
| Mon, 13 May 2024 | US$709.0b | US$236.9b | US$16.7b | 23.4x | 42.4x | 3x |
| Wed, 10 Apr 2024 | US$763.2b | US$227.8b | US$13.8b | 24.9x | 55.2x | 3.4x |
| Fri, 08 Mar 2024 | US$823.3b | US$227.7b | US$14.3b | 22.7x | 57.4x | 3.6x |
| Sun, 04 Feb 2024 | US$843.8b | US$229.9b | US$13.5b | 22.4x | 62.7x | 3.7x |
| Tue, 02 Jan 2024 | US$794.0b | US$229.5b | US$12.8b | 20.7x | 62x | 3.5x |
| Thu, 30 Nov 2023 | US$742.1b | US$228.6b | US$12.7b | 20.6x | 58.5x | 3.2x |
| Sat, 28 Oct 2023 | US$620.2b | US$227.8b | US$11.4b | 17.6x | 54.4x | 2.7x |
| Mon, 25 Sep 2023 | US$671.1b | US$226.6b | US$6.8b | 24x | 99x | 3x |
| Wed, 23 Aug 2023 | US$659.2b | US$226.1b | US$6.6b | 20.4x | 99.8x | 2.9x |
| Fri, 21 Jul 2023 | US$691.8b | US$228.6b | US$6.2b | 25.2x | 111.5x | 3x |
| Sun, 18 Jun 2023 | US$694.9b | US$228.3b | US$5.9b | 24.4x | 117.4x | 3x |
| Tue, 16 May 2023 | US$622.4b | US$229.7b | US$6.5b | 23.8x | 96.1x | 2.7x |
| Thu, 13 Apr 2023 | US$588.8b | US$225.6b | US$2.5b | 23.5x | 239.3x | 2.6x |
| Sat, 11 Mar 2023 | US$1.9t | US$463.9b | US$22.4b | 25.1x | 84x | 4x |
| Mon, 06 Feb 2023 | US$2.1t | US$459.6b | US$40.0b | 28.4x | 51.9x | 4.5x |
| Wed, 04 Jan 2023 | US$1.9t | US$457.7b | US$39.2b | 27.3x | 48.2x | 4.1x |
| Fri, 02 Dec 2022 | US$2.0t | US$456.9b | US$39.0b | 29.4x | 51.5x | 4.4x |
| Sun, 30 Oct 2022 | US$1.9t | US$453.7b | US$36.9b | 26.8x | 52.1x | 4.2x |
| Tue, 27 Sep 2022 | US$1.8t | US$449.0b | US$41.6b | 25.6x | 42.6x | 3.9x |
| Thu, 25 Aug 2022 | US$2.1t | US$446.2b | US$41.7b | 29.2x | 49.3x | 4.6x |
| Sat, 23 Jul 2022 | US$2.0t | US$442.8b | US$47.6b | 30.4x | 42.9x | 4.6x |
| Mon, 20 Jun 2022 | US$1.8t | US$439.3b | US$46.9b | 26.6x | 39.3x | 4.2x |
| Wed, 18 May 2022 | US$2.0t | US$438.0b | US$46.0b | 26.4x | 42.6x | 4.5x |
Price to Earnings Ratio
42.6x
Current Industry PE
- Investors are pessimistic on the American IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 51.7x which is lower than its 3-year average PE of 67.2x.
- The industry is trading close to its 3-year average PS ratio of 3.6x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 29% per year over the last three years,
- Revenues have also declined 18% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | -0.26% | |
| Tech | 0.33% | |
| IT | 0.54% | |
| IT Consulting | 1.65% | |
| Data Processing Services | 0.28% | |
| Internet Services and Infrastructure | -1.25% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 32.1x.
- Analysts are expecting annual earnings growth of 10.7%, which is higher than its past year's earnings growth of 3.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 25% over the next 5 years.
- However this is lower than its past earnings growth rate of 37% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| IBM International Business Machines | US$249.20 | 1.5% +US$3.3b | 49.1% | PE41.2x | |
| NET Cloudflare | US$132.34 | 6.5% +US$2.8b | 84.0% | PS25.9x | |
| SNOW Snowflake | US$174.14 | 3.9% +US$2.2b | 10.8% | PS16x | |
| ACN Accenture | US$307.90 | 0.8% +US$1.6b | 0.5% | PE25.1x | |
| OKTA Okta | US$119.45 | 5.8% +US$1.1b | 22.6% | PE740.6x |
