Okta (NASDAQ: OKTA) shareholders lost ground to the market on Monday, with the stock down by 8.3%, compared to a 0.4% decline in the S&P 500 and a 1.2% dip in the tech-focused Nasdaq index. The session's decline continued a trend for Okta and many of its peers in the cloud and software services niches. Okta's peer Palo Alto Networks will report its latest earnings results in just a few days, and there are concerns about weaker profits ahead for its business in an era of rising interest rates and a slowing economic expansion.
With rising inflation and the potential for a recession, many businesses dependent on consumer spending have a reason to worry. This makes cybersecurity stocks a great buy today, as they are being sold off with their tech brethren, even though their businesses won't likely be affected. My top three cybersecurity stocks to buy right now are CrowdStrike Holdings (NASDAQ: CRWD), Cloudflare (NYSE: NET), and Okta (NASDAQ: OKTA).
The Nasdaq Composite (NASDAQINDEX: ^IXIC) currently sits more than 20% below its late-March high, and is down nearly 30% from November's peak. Here's closer look at three of the Nasdaq's most beaten-down stocks that could be near a bottom, and are ready to bounce back. Okta (NASDAQ: OKTA) is a cybersecurity outfit.