Work management platform Asana (NYSE:ASAN) is falling fast today amidst signs of an industry-wide decline. On an otherwise dreary day for the markets, ASAN stock is down more than 22% today. What’s behind the workplace organization tool’s brutal pullback?
Well, earlier today, major competitor Monday.com (NASDAQ:MNDY) hosted its quarterly earnings call and the results didn’t instill confidence in investors. MNDY stock is currently down more than 27% after reporting fourth-quarter and full-year 2021 results. The company failed to beat revenue growth and non-GAAP earnings per share (EPS) estimates and demonstrated a potential industry-wide downtrend. Monday.com reported revenue growth of 91%, less than previous quarters’ revenue growth of 94% to 95%.
Asana’s decline is likely due to Monday.com’s disastrous response to its earnings report. Since its peak in October, ASAN has shed more than 65% of its value. ASAN stock is currently trending around $47 after today’s drop.
Here’s what else you need to know about this struggling workplace management company.
ASAN Stock Hits 30-Week Low as Workplace Management Industry Hits Turbulence
Asana and Monday.com have continued to suffer brutal losses over the past several months, largely due to variables outside both their control. Despite Monday.com failing to beat some investor estimates, its numbers were by and large very acceptable. So, what’s the behind the software slump today hitting the two companies?
Likely, Asana and Monday.com are suffering from the recent tech and growth stock downturn making waves across the market. Since November, practically the entire tech sector has seen a collective decline in the face of impending interest rate hikes. Indeed, the U.S. Federal Reserve has continued to levy expectations of a future interest rate increase, clearly spooking many investors in the process.
ASAN stock investors continue to take on massive losses in the face of today’s surprising drop. It’s unclear when the workplace management company will begin to see a reversal. However, given the industry’s increasing relevance as companies switch to hybrid work models — requiring a more tailored organization methodology — Asana bulls are sure to hold out hope for the long run.
On the date of publication, Shrey Dua did not hold (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.