Asana (ASAN) stock price has imploded in the past few weeks, falling by over 34% from its highest point in 2024. It has dropped to a low of $18.3, and is hovering at its lowest swing since December 6. Is ASAN a good company to buy ahead of the upcoming quarterly and annual results?
Asana earnings ahead
Asana stock price will be in focus on Monday as the technology company publishes its financial results.
Historically, its stock tends to have some big moves after publishing its quarterly results. It jumped by over 40% in December when it released strong financial results and boosted its forward guidance. It dropped by 15% in September and May after releasing its numbers.
Wall Street analysts are optimistic that the company continued growing slowly in the last quarter. The average estimate is that its revenue rose by almost 10% in Q4 to $188 million.
While the last quarter’s numbers are important, investors often look at a company’s guidance to determine the next price action. Analysts expect the guidance for the current quarter will be $190 million, while the annual revenue will be $723 million.
The most recent results showed that the company’s growth continued. Its revenue rose by 10% to $183.9 million in Q3’25, while its loss continued to narrow. The company had a net loss of $57.3 million, down a bit from the $61.8 million it had lost a year earlier.
Read more: Expensive Asana stock price could surge by 195% in 2025
Asana growth is slowing
However, while these results were better than expected, they also demonstrated that the era of its strong growth was ending.
There are two potential reasons for this. First, Asana operates in a highly competitive industry, competing with Wrike, Jira, Smartsheet, Trello, and Monday.com.
Most companies interested in these solutions already have their service provider, and in many cases, they rarely change. As such, the future growth in terms of customer additions will likely be slow.
Second, companies, especially in the technology vertical are facing substantial challenges, a trend that may continue this year because of Donald Trump’s tariffs. These issues mean that the company will likely struggle adding more customers in the coming years.
The other major challenge is its AI Studio, a solution that enables companies to build and launch AI agents easily. For example, companies are using these agents to translate content across numerous languages and execute complex workflows.
Asana’s AI Agent is the company’s first consumption-based pricing product, which will provide higher revenues in the future. However, it is still too early to predict whether the business will help to supercharge Asana’s growth trajectory.
Is ASAN stock cheap or expensive ahead of earnings?
Asana is a company valued at over $4 billion, and its annual revenue for 2025 is expected to be $723 million, followed by $802 million in 2026.
These numbers mean that the company has a forward price-to-sales of about 5, which is higher than other similar companies.
Asana is not making profits yet, meaning that it does not have a price-to-earnings ratio for now. However, we can estimate its future net profit margin by comparing it with other SaaS companies like Salesforce, Adobe, and Servicenow. CRM has a margin of 16%, while Adobe has 25%, and Servicenow has 13%.
As such, assuming that it can achieve a 25% profit margin, its annual profit would be $201 million, meaning that it has a hypothetical multiple of 20, which is not all that expensive.
Asana has a revenue growth rate of 10% and a present net income margin of minus 36%, giving it a rule of 40 metric of minus 26%. That is a sign that the stock is a bit overvalued.
Asana stock price analysis
The daily chart shows that the ASAN share price has crashed in the past few months. It has dropped from a high of $24.43 in February to the current $18.25.
The stock has crashed below the key support at $18.45, the neckline of the double-top pattern. It has dropped below the 50-day moving average and the 50% Fibonacci Retracement point.
Asana share price has found support at the 200-day moving average. Therefore, the key support and resistance levels to watch will be at $16.80 and the 50-day moving average at $20.
The post Asana stock price forecast ahead of earnings: is it a good buy? appeared first on Invezz
