The narrative surrounding Asana (NASDAQ:ASAN) stock centers around the perception of tech. When market sentiment around tech is positive, it does well. When that same sentiment sours, Asana in particular gets hurt.
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That fundamental truth has been on display of late as ASAN stock has fallen off a cliff since mid-November.
It’s fairly easy to surmise why Asana in particular fares so poorly at certain times.
Depending on one’s subjective opinion ASAN stock is either a bad deal or simply highly valued. It carries a price-to-book ratio of 55.79 currently. That’s worse than 95% of the software industry. Markets tend to punish such outliers on the notion that they’ve simply flown too high for too long.
Back in mid-November, it was news related to President Biden’s nomination of Federal Reserve Board Chair Jerome Powell to a new four-year term.
That announcement sent 10-year treasury notes moving upward.
Roughly a week ago, investors again got spooked about worries of slowing growth in the tech sector. The ironic truth though is that it wasn’t Asana that had trouble. Rather, it was slowing growth out of DocuSign (NASDAQ:DOCU) and Zoom (NASDAQ:ZM) that sent ripples throughout the tech sector.
Asana, on the other hand, has done nothing but exceed expectations lately.
A Closer Look at ASAN Stock
On Dec. 2, the workflow efficiency tool announced record quarterly earnings. Revenue reached $100.3 million in Q3, up 70% on a year-over-year basis. That was well ahead of the guidance management provided suggesting that the company might reasonably expect to record between $93 to $94 million in the quarter.
Company management had also provided guidance that EPS losses should fall between 26 and 27 cents prior to the earnings release. That too was a positive surprise with the firm hitting a 23 cent EPS loss in the quarter.
That means there’s an opportunity afoot.
This is a contrarian opportunity if ever there was one. Oppenheimer (NYSE:OPY) analyst Ittai Kidron rates Asana positively over a longer timeframe: “Long-term, we believe Asana is positioned to capitalize on a largely untapped greenfield opportunity that can drive a multi-year growth trajectory.”
When Asana released earnings on Dec. 2 it gave guidance to expect growth in the immediate future as well. The firm anticipates between $104.5 to $105.5 million in revenues in Q4. If that materializes it will represent 53%-54% YoY.
In other words, investors can simply establish a position in ASAN stock right now and wait for the market pendulum to swing back in favor of tech.
If recent history is any indication, it could happen quite quickly. It was only back in February that rising interest rates dealt a similar blow to tech stocks. They rebounded, and the cycle repeated itself.
What to Do
Remember, Asana is suffering here because other tech firms are slipping. That, combined with rate hikes has made tech stocks temporarily unattractive broadly. But they will come back into fashion, and when they do, Asana will be among the first to receive a price bump.
That’s because it has performed strongly while other tech stocks have languished. Tech cyclicality a is well-established phenomenon. Asana is a stock which is in prime position and will certainly rise when that cycle swings back in favor of tech.
Asana has the right mix of factors that contrarian investors seek. It’s strong, but has been punished through no fault of its own. Those who recognize that simple truth stand to capitalize by moving right now.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
FAQs
Is Asana stock a Buy, Sell or Hold? Asana stock has received a consensus rating of hold. The average rating score is and is based on 23 buy ratings, 33 hold ratings, and 15 sell ratings.
Will Asana stock recover? ›
ASAN Stock 12 Month Forecast
Based on 13 Wall Street analysts offering 12 month price targets for Asana in the last 3 months. The average price target is $16.00 with a high forecast of $27.00 and a low forecast of $1.00. The average price target represents a 11.03% change from the last price of $14.41.
Why did Asana stock drop? ›
What Happened: Shares of work management software maker Asana (NYSE: ASAN) fell 11.1% in the morning session after the company reported fourth-quarter results and provided underwhelming guidance, with revenue projections for the next quarter and the full year in line with expectations.
How much of Asana does Dustin Moskovitz own? ›
What type of owners hold Asana Inc stock?
| Name | Hold | Shares |
|---|
| Dustin A. Moskovitz | 22.82% | 52,045,482 |
| Voya Investment Management LLC | 5.09% | 11,611,345 |
| Vanguard Group Inc | 4.09% | 9,326,145 |
| Blackrock Inc | 3.07% | 7,005,360 |
6 more rowsStock Price Forecast
The 12 analysts with 12-month price forecasts for Asana stock have an average target of 18.33, with a low estimate of 10 and a high estimate of 27. The average target predicts an increase of 27.34% from the current stock price of 14.40.
What is the projection for Asana stock? ›
Based on short-term price targets offered by 15 analysts, the average price target for Asana, Inc. comes to $17.20. The forecasts range from a low of $10.00 to a high of $27.00. The average price target represents an increase of 26.66% from the last closing price of $13.58.
What is the future of Asana? ›
The Future of Asana is a virtual event to share our vision for the future of work. Learn how Asana is enhancing the future of work by enabling individual focus, team efficiency and organization-wide engagement like never before.
What is ASAN stock forecast for 2024? ›
According to our current ASAN stock forecast, the value of Asana shares will drop by -4.63% and reach $ 13.82 per share by July 22, 2024. Per our technical indicators, the current sentiment is Neutral while the Fear & Greed Index is showing 39 (Fear).
Is Asana worth the price? ›
Overall, the price point of $24.99 is justifiable for larger teams. As long as you're taking advantage of the advanced features, Asana Advanced is worth it.
Is Asana making money? ›
Over 12 months, Asana reported revenue of US$653m, which is a gain of 19%, although it did not report any earnings before interest and tax. That rate of growth is a bit slow for our taste, but it takes all types to make a world.
Asana's platform enables real-time collaboration and communication among team members, allowing them to work together seamlessly on projects. With Asana's user-friendly interface and customizable settings, tracking progress, assigning tasks and communicating with team members becomes an effortless process.
Who owns Asana stock? ›
Largest shareholders include Voya Investment Management Llc, Vanguard Group Inc, BlackRock Inc., Champlain Investment Partners, LLC, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, State Street Corp, IWM - iShares Russell 2000 ETF, NAESX - Vanguard Small-Cap Index Fund Investor Shares, Geode Capital ...
Is Asan stock a buy or sell? ›
The financial health and growth prospects of ASAN, demonstrate its potential to underperform the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.
Is Asana an Israeli company? ›
Asana is a Swiss-Israeli automotive infrastructure software pure player providing an operating system for the smart-car: SmartCarOS™.
Who is the owner of Asana? ›
Dustin Moskovitz is the co-founder and CEO of Asana. As Asana's CEO, Dustin is dedicated to creating a product that helps the world's teams collaborate effortlessly, in addition to leading the company's award-winning culture.
What is Asana stock prediction for 2030? ›
In 2030, the Asana stock will reach $ 44.38 if it maintains its current 10-year average growth rate. If this Asana stock prediction for 2030 materializes, ASAN stock will grow 208.00% from its current price.
What is the buy rating for Asana? ›
Based on 12 Wall Street analysts who have issued ratings for Asana in the last 12 months, the stock has a consensus rating of "Hold." Out of the 12 analysts, 2 have given a sell rating, 7 have given a hold rating, and 3 have given a buy rating for ASAN.
Is apps stock a buy now? ›
APPS Stock Forecast FAQ
Based on analyst ratings, Digital Turbine's 12-month average price target is $2.75. Digital Turbine has 23.87% upside potential, based on the analysts' average price target. Digital Turbine has a consensus rating of Hold which is based on 0 buy ratings, 3 hold ratings and 0 sell ratings.
Is App a good stock to buy? ›
APP Stock Forecast FAQ
What is APP's upside potential, based on the analysts' average price target? AppLovin has 21.43% upside potential, based on the analysts' average price target. AppLovin has a consensus rating of Strong Buy which is based on 9 buy ratings, 1 hold ratings and 0 sell ratings.
