Why Is Okta (OKTA) Stock Down Today?

Okta (NASDAQ:OKTA) stock is trending lower today following reports that the identity and access management company has suffered a cyberattack.

Cybersecurity Stocks To Buy: Okta (OKTA)
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OKTA stock was down as much as 8% in morning trading after reports surfaced that a hacker has gained access to the company’s internal system, potentially putting its customers at risk.

OKTA stock finished trading yesterday at $169.41 a share, down 24% year to date.

What Happened With OKTA Stock

Okta said it was alerted to a potential cybersecurity breach when hackers, allegedly representing a group called Lapsus$, posted photographs of what they claim to be the company’s internal technology on Telegram.

However, in a social media post, Okta CEO Todd McKinnon said the photos could be linked to an attempted hack in January that has since been contained.

“Based on our investigation to date, there is no evidence of ongoing malicious activity beyond the activity detected in January,” McKinnon said on Twitter.

Why It Matters

The potential hack comes as President Joe Biden warned of growing threats of cyberattacks from Russian hackers in response to Western sanctions. On Monday, Biden called on companies to bolster their cybersecurity measures in an effort to counter any hackers who may target their operations or digital infrastructure.

“You have the power, the capacity, and the responsibility to strengthen the cybersecurity and resilience of the critical services and technologies on which Americans rely. We need everyone to do their part…,” Biden said in a White House statement on March 21.

What’s Next for Okta

OKTA stock is going to take a hit today on concerns that its digital defenses have been breached by hackers. Hurting matters is the threat that customer data are at risk. Okta says it is continuing to investigate the possible security breach, and any clarity the company can provide on what exactly has occurred should help the share price stabilize in the near term and potentially recover.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


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