Okta's Growth and Optimism Skyrocket in February

Fundamentals drove the gains

A great earnings report sparked optimism for the cybersecurity stock. Shares of Okta (NASDAQ: OKTA) rose 29.9% last month, according to data provided by S&P Global Market Intelligence. The cybersecurity stock was buoyed by an impressive quarterly earnings report. Okta's management team delivered impressive cost controls and fueled optimism about the company's ability to generate cash flow.

Any move higher is generally welcomed by investors

Companies that report strong growth, profitability, or key performance metrics are generally more reliable than stocks that are gaining value primarily on hype. Okta's latest results indicate that it's likely well equipped to operate as a profitable company that doesn't need extreme growth every year.

The stock's valuation might be tough to sustain

Okta's forward P/E ratio is over 50 and its price-to-sales is around 7.9. There's a good chance that profits and cash flows will expand much more quickly than sales, keeping investors happy. Any indication of that narrative falling apart could lead to significant volatility. Should you invest $1,000 in Okta right now?