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Cybersecurity ETFs rebound after earnings reports from Okta and Splunk

Exchange traded funds attached to the cybersecurity sector bounced back during Thursday's intraday trading. The move followed a new round of earnings reports from a couple of industry players, helping the space rebound after a decline on Wednesday, when a weak Q4 outlook from CrowdStrike (CRWD) weighed on the group.

The advance in cybersecurity ETFs came as Okta (NASDAQ:OKTA) jumped more than 20% and Splunk (NASDAQ:SPLK) rose more than 13% on better-than-expected Q3 results and outlook.

SPLK is owned by 154 ETFs and OKTA is owned by 153 ETFs.

ETFMG Prime Cyber Security ETF (HACK) has the largest allocation to SPLK stock among funds on the market, with a portfolio weight of 4.35%. The ETF is also the fifth-largest holder of OKTA stock with a portfolio weight of 3.12%. HACK was up by ~3% in Thursday's intraday action.

Other ETFs with a heavy weight of SPLK and OKTA include WisdomTree Cybersecurity Fund (WCBR) and First Trust NASDAQ Cybersecurity ETF (CIBR), were up ~4 and ~2% during Thursday's intraday trading.

The rallies came as Okta (OKTA) raised its revenue forecast for FY2023 and said it was boosting its profitability outlook by “approximately $66M at the high end.”

Splunk (SPLK) jumped after it raised its full-year outlook for profit, sales and cash flow. The company said it expects sales between $3.455B and $3.485B, up from a prior forecast that called for a figure between $3.35B and $3.4B. Analysts were looking for a revenue total of $3.38B. Meanwhile, SPLK also projected free cash flow of at least $420M, up from its previous guidance of $400M.

Elsewhere in the sector, CRWD rebounded after plunging on Wednesday following a poorly received quarterly update. Bolstered by improved sentiment in the sector generated by SPLK and OKTA, CRWD rose 2% after falling about 15% the previous day.

Looking at the general tech sector, the Technology Select Sector SPDR ETF (XLK) was down by 0.2% and the iShares Semiconductor ETF (SOXX) was down by 0.81% in intraday action.

In other notable move, Snowflake (SNOW) is also edging higher after Q3 earnings beat.

On YTD basis, SPLK down more than 26%, OKTA down more than 70%, WCBR down 35%, CIBR down 20% and HACK down around 23%.

For more on OKTA and SPLK following the latest earnings data, Seeking Alpha contributor Michael Wiggins De Oliveira is optimistic about their profitability in the near future.