Okta Inc. (NASDAQ: OKTA) saw its stock surge 6.16% in after-hours trading on Monday, following the announcement of its new Auth for GenAI platform. This latest offering, part of the Auth0 Platform, is designed to allow developers to integrate secure identity solutions into AI applications, addressing growing concerns over data protection in the rapidly evolving field of artificial intelligence.

The Auth for GenAI platform underscores Okta's commitment to enhancing security and user experiences in the AI space. This move comes at a crucial time when global attention is increasingly focused on data protection, especially in AI applications. By providing developers with tools to implement robust identity solutions, Okta is positioning itself at the forefront of addressing these critical concerns in the burgeoning AI industry.

This positive market reaction follows a strong week for Okta, which saw an 11.81% increase in share price, outperforming the broader tech market. The company's recent financial performance has also been encouraging, with a significant revenue increase to $2.61 billion for the fiscal year ending January 31, 2025, and a transition to profitability. With analysts setting a fair value price target of $117.33 per share, compared to the current trading price of around $103.38, investors appear to be recognizing Okta's growth potential in the identity and access management sector, particularly as it expands its offerings in the AI domain.