Asana: Weak Product And Persistent Churn (Downgrade)
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Gary Alexander32.85K FollowersFollow5ShareSavePlay(9min)CommentsSummaryAsana is downgraded to "Sell" due to deteriorating fundamentals, persistent churn, and lack of compelling growth catalysts.ASAN's revenue growth has slowed to single digits, with Q3 net retention at 96% and ongoing customer churn issues.Despite new AI features and leadership, ASAN's competitive position remains weak amid sector headwinds and intense competition.Trading at 3.5x EV/FY27 revenue, ASAN fails to meet even the Rule of 20, making it a value trap rather than a bargain.
Getty Images The AI revolution is a key theme that has dominated the market this year. The large-cap companies that have driven much of the S&P 500’s gains this year have been racing to outspend each other to set upThis article was written byGary Alexander32.85K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.