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Business Momentum Should Soon Be Reflected in Asana Share Price

Based in California, workforce-management software company Asana (NYSE:ASAN) offers a solution to a specific problem. As you learn more about the company’s strong potential in a specific market niche, you may be compelled to take a position in ASAN stock.

Asana logo displayed on a cellphone

Source: rafapress / Shutterstock.com

Here is a statistic that might shock you. Believe it or not, only 40% of workers’ time is spent doing strategic work (the work that really needs to get done). The other 60% is wasted on “work about work,” or what we might call busywork.

With its software, Asana seeks to solve the world’s workplace-team coordination problems. The software is apparently quite effective, as Asana’s users typically spend 33% less time on emails and are 42% faster in executing business processes.

That is impressive, yet there has been selling pressure on ASAN stock for several months now. This could present a prime buying opportunity, however, since Asana’s financial figures back up a bullish thesis.

ASAN Stock at a Glance

In 2021, Asana shares rallied from $28 to $145 over a six-month period. This goes to show how forcefully the stock can move when the buyers step in.

Surely, it is not mere happenstance that ASAN stock declined from November 2021 through January 2022. Bear in mind that many technology stocks fell during this time. It is not Asana’s fault, of course, that tech-market investors got spooked by the U.S. Federal Reserve’s hints at a possible interest-rate hike in March.

If a technology-stock drawdown is what brought ASAN stock below $50 in early February, then it may be time to pick up a few shares. After all, an eventual revisit to $145 (if it happens) would represent a near-tripling of the stock price.

Getting on the Grids

Getting awards and recognition is not absolutely required for any business enterprise. Yet, we must admit, it is nice to be validated by industry experts.

In that vein, Asana recently revealed that the company earned not just one, but two accolades from G2 Research. In particular, Asana was named the leader in G2 Research’s Winter 2021 Enterprise Grid and also topped G2’s Project Management Grid. With that, Asana marks ten consecutive quarters in the ranking’s Leader quadrant.

In the press release, you can see the Enterprise Grid, which shows that Asana outperformed its peers. Among the noted strengths of Asana’s products were the “‘impeccable user interface,’ along with its easy-to-use dashboards and wide selection of integrations.” 

According to Asana, the reviewers praised the company for its “ability to give leaders visibility on progress across the entire organization and capacity to instill a sense of accountability among teammates.”

Of course, G2’s accolades would not mean that much to investors if Asana couldn’t generate strong revenues. So, let’s delve into the financials now.

More Customers, More Revenue

For Asana’s fiscal statistics, we can thank Tim Wan, the company’s chief financial officer. In Asana’s most recent earnings call, Wan served up one statistic after another, thereby proving that his company is in growth mode.

At the end of 2021’s third quarter (Q3), Asana’s paying customer count had increased by 7,000 to an impressive 114,000. Year-over-year, that is a 28% improvement.

Importantly, Wan indicated that Asana’s large-customer count had ramped up in Q3. Specifically, Wan counted 739 Asana customers spending $50,000 or more on an annualized basis. That is a 132% year-over-year increase, and Asana’s “third consecutive quarter of accelerating year-over-year increase.”

But, of course, informed investors will want to see revenue growth. In that regard, Asana knocked it out of the park in 2021’s Q3. Wan reported $100.3 million in revenues, up 70% on a year-over-year basis.

The Takeaway on ASAN Stock

Through leading-edge software, Asana is helping to solve team-coordination issues in the workplace.

The accolades from G2 Research are notable and the company’s revenue growth bolsters the bull case for Asana’s long-term investors.

So, you don’t have to be deterred by the broad-market tech stock sell-off. The runway for higher prices in ASAN stock is clear and the window of opportunity is still open.

Asana currently gets a grade of “B” in my Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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Article printed from InvestorPlace Media, https://investorplace.com/2022/02/business-momentum-should-soon-be-reflected-in-asan-stock/.

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