CrowdStrike, MongoDB, Cloudflare, Okta, and JFrog Stocks Trade Down, What You Need To Know

What Happened?

A number of stocks fell in the afternoon session after markets pulled back as a report raised concerns about artificial intelligence demand and profitability. 

Oracle shares lost more than 5% following news of its cloud business generating lighter margins than expected. According to internal documents cited in the report, the gross profit margin for this business was only 14%, a figure much lower than what analysts had expected. This suggested that the high costs of running the advanced chip infrastructure were weighing on profitability. Compounding these worries was the ongoing U.S. government shutdown, in its second week, with no clear resolution in sight from Washington. These updates drove investors away from riskier assets and towards safe havens, a trend highlighted by gold futures hitting a record $4,000 per ounce for the first time.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Endpoint Security company CrowdStrike (NASDAQ:CRWD) fell 3.5%. Is now the time to buy CrowdStrike? Access our full analysis report here, it’s free for active Edge members.
• Data Storage company MongoDB (NASDAQ:MDB) fell 2.7%. Is now the time to buy MongoDB? Access our full analysis report here, it’s free for active Edge members.
• Content Delivery company Cloudflare (NYSE:NET) fell 2.5%. Is now the time to buy Cloudflare? Access our full analysis report here, it’s free for active Edge members.
• Identity Management company Okta (NASDAQ:OKTA) fell 3.7%. Is now the time to buy Okta? Access our full analysis report here, it’s free for active Edge members.
• Developer Operations company JFrog (NASDAQ:FROG) fell 3.4%. Is now the time to buy JFrog? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Okta (OKTA)

Okta’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 3.5% on the news that a share sale catapulted OpenAI to a staggering $500 billion valuation, making it the world's most valuable startup and fueling broad optimism for artificial intelligence. 

The deal involved current and former employees selling approximately $6.6 billion in stock to investors, including Thrive Capital and SoftBank. This landmark valuation is having a ripple effect across the market, bolstering investor confidence in the entire AI ecosystem. The enthusiasm has helped propel the tech-heavy Nasdaq 100 and the broader S&P 500 to record highs, as investors increasingly see the technology sector as the primary driver of market growth.

Okta is up 15.7% since the beginning of the year, but at $91.18 per share, it is still trading 28.4% below its 52-week high of $127.30 from May 2025. Investors who bought $1,000 worth of Okta’s shares 5 years ago would now be looking at an investment worth $385.37.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.