Okta Jumps 20% and CrowdStrike Gains 15% as AI Threats Lift Cyber Spending
Updated
Updated · CNBC · Aug 27
Okta Jumps 20% and CrowdStrike Gains 15% as AI Threats Lift Cyber Spending
3 articles · Updated · CNBC · Aug 27
Summary
Okta surged 20% and CrowdStrike rose 15% on Thursday after both beat fiscal second-quarter estimates and lifted forecasts, signaling stronger cybersecurity demand tied to AI adoption.
Executives said AI agents are accelerating attacks and forcing customers to spend more on protection; CrowdStrike called it an "arms race," while its flexible Falcon offering doubled year over year.
Okta said new products made up nearly one-third of bookings and pointed to dozens of AI deals won in Q2, though Bank of America upgraded the stock only to neutral, citing early adoption and limited near-term upside.
The rally spread across the sector, with Palo Alto Networks, SailPoint and Rubrik up about 9%, as investors looked ahead to results from Palo Alto and Zscaler next week for a broader read on AI-driven demand.