Asana stock sinks, Robinhood shares pop: Trending Tickers
Asana (ASAN) shares sink on Wednesday, closing the day over 16% lower on macroeconomic headwinds expected to stall growth. Robinhood (HOOD) shares rise following positive commentary from analysts following a dinner event with Robinhood management and CEO Vlad Tenev.
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Video Transcript
JOSH LIPTON: Now let's get to some trending tickers as well here. We're going to start with shares of work management software company Asana plummeting. Despite an earnings beat, investors concerned larger macro issues will continue to slow the company's growth. You can see there, rough day, Asana, if you're bullish on that name, down nearly 17%.
Brent Bracelin over at Piper analyst, I like a lot, smart guy. And Brent has underweight that name, so equivalent of a sell. Talks about what he sees as eroding fundamentals. Profitability remains elusive, he said, increasing operating expenses. And then I think really the money line to his clients, the growth outlook suggests that challenges could persist, he said, into next year's price target 16.
JULIE HYMAN: Yeah, that's something that Brent Thill has talked about as well. So when we're looking out to next year, bookings is something-- billings, sort of, those forward indicators is something a lot of analysts were pointing to for this company. The stock, by the way, is up considerably this year more than 40%.
So the declines that we're seeing today is on the back of that, although that two-year chart looks a lot uglier than that. The name of this company always cracks me up. An Asana is a yoga pose.
JOSH LIPTON: I did not know that.
JULIE HYMAN: So I assume that's where it comes from? Which, of course--
JOSH LIPTON: No, you learn something every day--
JULIE HYMAN: You think that's software
JOSH LIPTON: --next to Julie Hyman
JULIE HYMAN: --and applications and yoga hand in hand, of course for this--
JOSH LIPTON: Well, now I'm feeling kind of calm about it. I was worried about this name--
JULIE HYMAN: But now you feel much better.
JOSH LIPTON: I feel much more centered.
JULIE HYMAN: Well, let's talk about another stock. Maybe it's going to make-- I don't know. We'll see what mood it elicits. Robinhood, that stock is up 7% today.
Now, apparently, analysts had a dinner with management and a lot of them coming out with some positive comments on the back of that. By the way, we talked to Devin Ryan yesterday with JMP Citizen Securities. He already was pretty positive on Robinhood as well. Dan Dolev who is a smart fintech analyst that both of us follow over at Mizuho said he was happy to hear about the firm's crypto share gains.
JOSH LIPTON: Yep, that was a big thing.
JULIE HYMAN: That's something we talked about yesterday that they saw a 75% increase in crypto volumes in November from October.
JOSH LIPTON: Yeah.
JULIE HYMAN: So the surge we've seen in the stock lately has been pretty incredible for Robinhood.
JOSH LIPTON: Yeah, it's been a nice pop though, of course, you're still down very hard from that August 2021 high there for sure. But to your point, they did have-- they had this dinner. And financial analysts, I don't know, they ate well maybe, they drank well, they liked what they heard.
Citi saying, to your same point, Julie. They were telling clients today, yes, they are more constructive on the company's growth prospects than we have been in some time. Though, of course, they are still neutral, so on the sidelines. But you did see some positive commentary out of this one.
JULIE HYMAN: Yeah and just one more thing I wanted to mention about the recent surge that we have seen, 11 of the past 13 sessions for Robinhood have seen increases in the price. And so that means an about 40% surge in that period of time just in the past few weeks. So it's been an impressive move even before, obviously, all these analysts came in and--
JOSH LIPTON: Before the dinner?
JULIE HYMAN: --had a nosh together.
JOSH LIPTON: Wish I was at that dinner.
