Shares in Okta rose on Tuesday, putting a possible halt to a sell-off sparked by a new data breach the cybersecurity firm announced last week. Some analysts expect the incident to impact current quarter results for Okta stock.
Okta said Friday an unidentified hacking group had accessed files which some Okta customers had uploaded to its support system. The data breach involved about 1% of the company's customer base.
At BTIG Research, analyst Gray Powell said in a report: "We see limited impact to Okta longer term and believe there is little risk of customer churn stemming from this incident."
He added: "However, our contacts called out potential for near-term delays with new and expansion deals as enterprises will likely want to gain more clarity on the scope of the breach in coming weeks."
The company said the hackers were able to break into the system via stolen credentials. On the stock market today, Okta rose 3.6% to close at 71.91. Further, Okta stock tumbled 17% on Friday and Monday.
Okta Stock: Sales Pipeline Impact?
San Francisco-based Okta specializes in identity verification with software that monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
"Our early customer conversations indicate little risk of material churn although fiscal third quarter new business will likely be impacted," Jefferies analyst Joseph Gallo said in a report.
In March 2022, a hacking group called "Lapsus$" announced it gained access to Okta systems. Further, the group posted online screenshots taken from a computer used by one of Okta's third-party customer support engineers.
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