ABBV & OKTA: Two trending stocks on Thursday

Highlights

  • AbbVie (NYSE: ABBV) stocks recovery some grounds after a deep plunge on Wednesday.
  • ABBV now has to sell its medicine Rinvoq, which has a JAK inhibitor, with a warning that it may cause heart problems, cancer, or blood clots.
  • Okta, Inc’s (Nasdaq: OKTA) revenue of US$316 million in Q2, the fiscal year 2022.

The stocks of AbbVie Inc (NYSE: ABBV) and Okta, Inc (Nasdaq: OKTA) were trending on Wednesday for no apparent reason.

The ABBV stock was up 1.06 percent to US$113.46 at the pre-market on Wednesday after declining around 7 percent a day before.

The OKTA stock rose marginally by 0.09 percent to US$264.99 at 9.24 am ET after releasing its Q2 results for the fiscal year 2022.

Here are some recent developments of the two companies.

AbbVie Inc

On Wednesday, the US Food and Drug Administration (FDA) advised pharma companies using the Janus Kinase inhibitor in medicines to put a warning label on their products, alerting consumers about its various risks, including diseases like cancer. AbbVie also uses the JAK-inhibitor for its arthritis drug Rinvoq.

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The Illinois-based company develops drugs for diseases like arthritis. The ABBV stock went up by 4.78 percent YTD.

Source: Pixabay.

The company reported net revenue of US$13.9 billion in Q2, 2021, compared to US$10.4 billion in the year-ago quarter. The company’s gross profit was US$9.4 billion against US$6.7 billion in Q2, 2020. In addition, its net income was US$766 million against a net loss of US$738 million in Q2, 2020.

AbbVie has a market capitalization of US$198.4 billion. The P/E ratio is 30.26 and the forward P/E one year is 8.88. The EPS is US$3.71 and the annual dividend is US$5.20. The highest and lowest stock prices of the ABBV for the past 52 weeks were US$121.53 and US$79.11.

Okta, Inc.

The California-based IT company reported revenue of US$316 million in Q2 of FY 2022, up 57 percent YoY. The company incurred an operating loss of US$263 million or 83 percent of the total revenue in the quarter. The net loss was US$277 million or US$1.83 per share in Q2 of 2022 fiscal year, compared to a net loss of US$60 million or US$0.48 per share in Q2 of FY 2021.

The company used net cash of US$3 million or one percent of the revenue in operations. It was US$11 million or 5 percent of total revenue in the fiscal year 2021. The free cash flow was US$-4 million or 1 percent of the revenue in Q2, FY 2022. It was US$7 million or 3 percent of total revenue in FY 2021. The company had cash, cash equivalents, and short-term investments of US$2.47 billion at the end of Q2 FY 2022.

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OKTA’s market cap is US$40.5 billion, the forward P/E one year is -91.93, and the EPS is US$-3.80. Its 52-week highest and lowest stock prices were US$294 and US$185.05, respectively. The stock increased by 4.13 percent YTD.

Bottomline

Healthcare companies have seen strong growth in recent quarters. Although AbbVie has performed well in Q2, it may still face some challenges due to FDA notifications. OKTA, on the other hand, may see continued growth due to the overall improvement in the technology market.

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