Why This Facebook Founder Is Doubling Down on a Hypergrowth Tech Stock

  • Moskovitz purchased 19.27 million shares of Asana (ASAN) stock.
  • In total, the shares were valued at about $350 million and were acquired through a private placement.
  • Shares of ASAN stock are down more than 60% year-to-date.
ASAN stock - Why This Facebook Founder Is Doubling Down on a Hypergrowth Tech Stock

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Dustin Moskovitz, co-founder of Meta Platforms’ (NASDAQ:META) Facebook and the current CEO of Asana (NYSE:ASAN), is doubling down on ASAN stock. During the company’s Q2 earnings report, Moskovitz announced that he would purchase $350 million worth of Asana in a private placement. That’s equivalent to more than 19 million shares and is a strong stamp of confidence from the CEO.

The acquisition marks Moskovitz’s 25th individual purchase of ASAN stock this year. Furthermore, the purchase was Moskovitz’s first transaction of Asana since Feb. 25. Meanwhile, ASAN may be primed for a short squeeze. As of Aug. 31, around 15 million shares worth $289 million were sold short. The shares sold short are equal to 20.6% of the public float. That figure is more than enough to trigger a short squeeze.

Dustin Moskovitz Doubles Down on ASAN Stock

On Sept. 7, Moskovitz purchased 19.27 million shares of ASAN at an average price of $18.16 per share. After the purchase, he now directly owns a total of 39.11 million shares. Through a trust, he indirectly owns an additional 4.14 million shares. It’s evident that the CEO is bullish on ASAN, as he explained: “I am investing further in Asana because I strongly believe the market opportunity is enormous and that the Work Graph is the best possible solution for helping enterprises achieve their most important goals.”

During Q2, Asana reported revenue of $134.9 million, beating the consensus analyst estimate of $127.8 million by an impressive 5.5%. However, the company still remains unprofitable, reporting an earnings per share (EPS) loss of 34 cents. On the bright side, EPS still came above the analyst estimate of a loss of 39 cents. Full-year revenue guidance at the midpoint was raised to $545.5 million, up from the previous guidance of between $536 million to $540 million. Moskovitz also added that he expects Asana to achieve profitability on a free cash flow basis by 2024.

The company received mixed coverage after reporting earnings. Six firms adjusted their price targets. Four firms increased their targets, while two firms lowered them:

  1. Citi: Price target raised to $24.
  2. Wolfe Research: Price target raised to $23.75.
  3. Piper Sandler: Price target raised to $28.
  4. RBC Capital: Price target raised to $15.
  5. Morgan Stanley: Price target lowered to $22.
  6. Berenberg: Price target lowered to $35.

On the date of publication, Eddie Pan held a LONG position in META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


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