Changes in market conditions continue to impact tech stocks. That’s what is happening here with shares in Asana (NYSE:ASAN), a provider of workflow management software. The selloff in ASAN stock, which kicked off when tech first became out of favor in November, and was accelerated by a negative reaction to its last earnings report in December, has carried on so far this month.

Starting off January at just under $75 per share, right now it’s at around $54 per share. It’s unclear exactly how long tech stocks will remain out of favor. It could be on the verge of wrapping up. Or, it could persist in the coming months. However, keep something in mind. Either way it’s likely to be temporary.

At least, when it comes to high-quality tech stocks. Some former high-fliers may struggle to bounce back. But I don’t see that happening here with Asana. Sure, before the start of its pullback, it zoomed from an IPO price of $21 per share, to as much as $145.79 per share. Even so, the big bolt it made in the 14 months following its IPO were largely justified, given its operating performance.

Once this recent en-masse move out of tech finishes up, this SaaS play stands to start making a recovery. As it continues to deliver strong results, the market will in time warm back up to it. With this, now may be the time to start accumulating a position.

The Latest With ASAN Stock

Since last month’s earnings release, there has been little in terms of updates with Asana. Frankly, that’s a good thing. Despite its big decline in price since November, the “story” behind it hasn’t changed.

When I say story, I’m talking about how the company is still firmly in high growth mode, as demand for its platform remains robust.

Like I’ve touched on in past coverage of Asana, its software helps to remedy many of the inefficiencies that arise in the world of office work. As its tools help to boost productivity, it’s no surprise that it’s seeing impressive levels of customer growth. In particular, growth among large customers.

The result? As seen in the abovementioned quarterly results, Asana reported a top-line number ($100.3 million) that was up 70% from the prior year’s quarter, and came in above guidance. For the full year 2021, management’s latest outlook calls for between $371 million and $372 million in sales. That’s up 63% to 64% from 2020. Even better, is the fact that it’s far from reaching the peak when it comes to scaling up.

Things Are Just Warming Up With Asana

When it comes to bearish commentary on ASAN stock, much of the discussion is about decelerating sales growth. Skeptics will point to analyst projections for 2022, as well as a deceleration in its billings amount for last quarter, as signs this “growth story” is starting to run low on gas.

Investors stampeding out of the stock lately may be using this as their rationale. That’s true, even though the fact that Asana shares no longer have momentum on their side is likely the larger factor behind their decision. Yes, per numbers from the sell-side, expectations are that sales growth will slow down in the coming year. Instead of posting an annual growth rate above 60%, analysts project annual sales growth in 2022 of around 36.1%.

However, this by itself isn’t a sign that the company’s days of high growth are coming to an end. For one, given how its results in the past few quarters have shaped up, there’s a good chance it continues to deliver numbers ahead of both Wall Street’s estimates, as well as its own guidance.

Second, and more importantly, this view ignores the fact that things are just warming up when it comes to user adoption of its platform. With its service, it’s going after a total addressable market that’s worth as much as $50 billion in annual revenue. Compare that to the hundreds of millions in annual sales it’s generating today, and it’s clear that it doesn’t have to worry about running out of runway for quite some time.

The Takeaway on Asana Stock

Earning a “B” rating in my Portfolio Grader, changes in the market are what have pushed Asana lower over the past two months. We may or may not be toward the end of this extended tech selloff. Only time will tell.

Still, although it may continue to struggle in the near term, the “story” behind ASAN stock is still intact. If you’re on the prowl for oversold tech plays, make sure to add this one to your list.

— Louis Navellier and the InvestorPlace Research Staff

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Source: Investor Place