By Mackenzie Tatananni
Asana stock remains challenged in the face of CEO Dustin Moskovitz's sudden retirement and a downbeat outlook for the current fiscal quarter, analysts said.
Shares plummeted in after-hours trading Monday following the announcement that Moskovitz was stepping down from the top role at the company he co-founded nearly 17 years ago. Moskovitz will transition to the role of chair "when a new CEO begins" and intends to maintain his significant holdings in Asana, the company said.
News of Moskovitz's retirement also was weighing on shares Tuesday, as the stock cratered 26% to $12.40 in premarket trading. "As the largest shareholder and persistent buyer of the stock, this will likely flag more than just a typical leadership change to investors," KeyBanc analysts noted. The firm maintains a Hold rating on Asana stock.
Jefferies analysts reiterated a Hold rating and slashed their price target on the shares to $15 from $19. In addition to the leadership shake-up, "macro remains uneven and tech sector headwinds persist," they wrote. In their view, Asana must contend with "a lot of moving parts against an uncertain macro" in the current fiscal year.
Asana reported fiscal fourth-quarter earnings after the closing bell Monday. While revenue topped analysts' expectations and the company broke even on an adjusted basis versus a loss of 4 cents a share a year earlier, guidance failed to impress. Management projected revenue between $184.5 million and $186.5 million for the fiscal first quarter of 2026, missing analysts' calls for $191 million.
"The stock reaction is likely more than just inflated expectations," KeyBanc analysts said. In their view, there is a lot going on "and much of it skews more negative than positive."
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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March 11, 2025 08:45 ET (12:45 GMT)
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