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OKTA - Okta Inc News Story

$220.33 -3.2  -1.4%

Last Trade - 3:06pm

Large Cap
Market Cap £21.25bn
Enterprise Value £20.87bn
Revenue £490.9m
Position in Universe 344th / 6368

LIVE MARKETS U.S.-High-flying cloud stocks fall back to earth

Mon 9th September, 2019 7:26pm
* Major averages mixed: Dow slightly positive, S&P, Nasdaq dip * Energy, financials lead sector gainers; tech weakest group * U.S. 10-Year Treasury yield up to ~1.61% Sept 9 - Welcome to the home for real-time coverage of U.S. equity markets brought to you by Reuters stocks reporters and anchored today by Terence Gabriel. Reach him on Messenger to share your thoughts on market moves: terence.gabriel.tr.com@reuters.net HIGH-FLYING CLOUD STOCKS FALL BACK TO EARTH (1415 EDT/1815 GMT Cloud computing stocks are selling off on Monday and leading declines in a broad tech sector selloff, with investors dumping recent winners including Alteryx AYX.N and Coupa Software COUP.O . Alteryx is tumbling 15%, on track for its biggest one-day drop ever, and leaving its YTD gain at just over 100%. Crowdstrike CRWD.O is slumping 14%, bringing its loss to 25% since Thursday, when it reported strong quarterly reports and raised its full-year forecast. urn:newsml:reuters.com:*:nL2N25W1W1 Business software seller Medallia MDLA.N , which also reported upbeat results on Thurs, is down 23%, reducing its gain since its July IPO to 26%. The ISE Cloud Computing index .CPQ is off 1.6%, while the S&P 500 information technology index .SPLRCT is giving back more than 1%. The cloud computing industry boasts some of the highest earnings and sales multiples on Wall Street. Alteryx is trading at about 210 times expected earnings, while Coupa Software and Twilio TWLO.N are each trading at forward earnings multiples above 400, according to Refinitiv data. Medallia and Okta OKTA.O , which are both losing money, are trading at forward revenue multiples of 9 and 21, respectively, per Refinitiv. (Noel Randewich) ***** IPO MARKET: LINEUP LENGTHENS WHILE WEWORK WEIGHS ITS OPTIONS (1338 EDT/1738 GMT) Three more companies launched their IPOs this morning, extending the deal count to 11. Over the next two weeks these hopefuls are looking to raise nearly $4 billion in proceeds. Meanwhile, WeWork owner The We Company, which is eyeing a September IPO kickoff, mulls slashing its valuation as investor concerns over the U.S. office sharing manager's path to profitability and corporate governance mount. urn:newsml:reuters.com:*:nL5N25X5AU That said, the current backdrop remains conducive for new issues. The S&P 500 .SPX has rallied sharply amid a two-week winning streak and the CBOE Market Volatility index .VIX has eased to just south of 16. A VIX level of 20 usually triggers a "go/no-go" discussion between companies and their investment bankers. And overall IPO return performance has been relatively strong despite this year's high-profile flops by ride-hailer firms Uber Technologies UBER.N and smaller rival Lyft LYFT.O . Indeed, the Renaissance IPO ETF IPO.P , which owns shares of companies that recently went public, is up 31% year-to-date. SmileDirectClub SDC.O headlines this week's batch of six potential offerings, as the direct-to-consumer orthodontics company looks to price its up to $1.3 billion deal on Wednesday. SEC filing https://www.sec.gov/Archives/edgar/data/1775625/000104746919004925/a2239521zs-1a.htm#dq46401_security_ownership_of_certain___sec02525 Next week, two tech deals are among the five IPOs scheduled to price. Analytics software firm Datadog Inc https://www.sec.gov/Archives/edgar/data/1561550/000119312519240411/d745413ds1a.htm ($500 million) and cybersecurity company Ping Identity Holding Corp https://www.sec.gov/Archives/edgar/data/1679826/000104746919005063/a2239550zs-1a.htm PING.O ($200 million) join Danaher Corp's DHR.N dental products unit, Envista Holdings https://www.sec.gov/Archives/edgar/data/1757073/000175707319000016/envistas-1a2prospectus.htm ($640 million) among the others. (Lance Tupper) ***** EXPECTATIONS FOR STOCK PRICE GAINS SHOW WEAR AND TEAR (1305 EDT/1705 GMT) U.S. consumers' inflation expectations fell in August and workers grew more pessimistic about their job situation, data from the New York Federal Reserve showed on Monday. urn:newsml:reuters.com:*:nL2N2600QH Indeed, the lingering effects of the trade war between the United States and China, a slowdown in business investment and a contraction in the manufacturing sector may be finally taking their toll on the mindset of U.S. consumers. Those issues appear to be reflected in the New York Fed report, where only 38% of those surveyed expect U.S. stock prices to be higher in a year, the lowest level since October 2016: Meanwhile, in the latest American Association of Individual Investors (AAII) Sentiment Survey released last week optimism over the direction of stock prices over the next six months climbed to 28.6%, its highest level since late July. That said, optimism was below its historical average of 38.0% for the 28th time this year and the 16th time in 17 weeks. urn:newsml:reuters.com:*:nL2N25X0WA Separately, The Conference Board's U.S. Consumer Confidence index inched down in August, though it was better than analysts expected. urn:newsml:reuters.com:*:nL2N25N0NE (Terence Gabriel, Dan Burns) ***** IT'S BEEN A BIT OF A MURKY MONDAY FOR THE MAJOR AVERAGES (1212 EDT/1612 GMT) It's been a relatively quiet session so far with the major averages struggling to move clearly in one direction or the other. That said, small caps are outperforming with the Russell 2000 .RUT up more than 1% on the day. This as hopes for further monetary stimulus from global central banks may be putting a floor under the market at the moment. urn:newsml:reuters.com:*:nL5N2604RA Indeed, Chinese stocks rose overnight after Beijing cut the amount of cash banks must keep on reserve. urn:newsml:reuters.com:*:nL3N2600SJ In any event, despite a flat S&P 500 .SPX , there is more spirited action under the surface. The energy .SPNY and financial .SPSY sectors are enjoying gains of 1-2%. This with NYMEX Crude Futures CLcv1 rallying more than 2% urn:newsml:reuters.com:*:nL3N2600T1, and the U.S. 10-Year Treasury yield US10YT=RR back up to 1.62%. Oil services and banks are among winners. The VanEck Vectors Oil Services ETF OIH.P is advancing 6% urn:newsml:reuters.com:*:nL3N2603B6, while the SPDR S&P Bank ETF KBE.P is tacking on close to 3%. urn:newsml:reuters.com:*:nL3N2603CV Meanwhile, tech .SPLRCT is on the losing side, while healthcare .SPXHC is down more than 1%. With these swings, value IVE.P is outperforming growth IVW.P . Here is your midday snapshot: (Terence Gabriel) ***** For Monday's Live Markets - U.S. - posts prior to 1200 EDT/1600 GMT, click here: urn:newsml:reuters.com:*:nL2N2600N7 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ midday09092019 https://tmsnrt.rs/2N5QxbA NYfedstockexp09092019 https://tmsnrt.rs/316Qtvm Cloud stocks sell off https://tmsnrt.rs/2N6r4i4 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> ((terence.gabriel.tr.com@reuters.net terence.gabriel@tr.com 646-223-4122))
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