Asana (NYSE:ASAN) stock opened higher on broader positive news. Nasdaq futures jumped by nearly 2% on Thursday, thanks to a 14% pop in shares of Facebook parent Meta Platforms (NASDAQ:FB) after its earnings report swept the market with surprisingly good numbers. Meta Platforms reported mixed, but better-than-expected first-quarter results. Revenue was lower than expected, but monthly active users were higher and earnings beat analyst expectations.
In addition, Twitter (NYSE:TWTR) released its quarterly earnings before markets opened on Thursday. It could be its last release as a listed entity if the Twitter board accepts Elon Musk’s offer of $44 billion to buy the company and make it private. Twitter’s daily active user count for the first quarter exceeded expectations. However, revenue missed market projections.
During these positive external catalysts, ASAN stock is also on the rise. That will bring the attention of the investing world back to the much-battered stock. Shares have lost almost 60% of value in the year thus far. You cannot blame the markets solely for this response. In the fourth quarter, Asana did not do well. It is understandable why investors were displeased with the news, seeing shares dive.
Asana saw a lot of growth last year, thanks to companies that still haven’t figured out how to deal with remote employees and their complexities. As Louis Navellier points out, usage of this hybrid work model is expected to grow as more companies embrace this management style. It is a secular tailwind that will keep powering its earnings for years to come.
Now that the spotlight is on Asana again, it is time to invest in it.
ASAN Stock Is a Great Long-Term Investment
Growth stocks are on the decline because they are more sensitive to interest rate hikes and trade wars that are happening globally. Investors are also worried about how much growth these companies will be able to generate in comparison to their current valuation levels.
Cutting capital budgets and spending less on business expansion is a way to increase cash flow in a company. In this tight economic climate, expanding the company’s value can be challenging, but it’s important to create long-term sustainability.
Its losses are related to higher spending on sales and marketing efforts. During this time, potential customers will be looking for ways to keep projects on track in various working environments. Therefore, the investment is worthwhile.
On the publication date, Faizan Farooque 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.