10 Worst Artificial Intelligence Stocks Under $50 According to Short Sellers

7) Asana, Inc. (NYSE:ASAN)

Share Price as of September 20: $11.92

Short % of Float (As of August 30): 11.50%

Number of Hedge Fund Holders: 23

Asana, Inc. (NYSE:ASAN) operates a work management platform, focused on individuals, team leads, and executives in the US and internationally. The company launched Asana AI, bringing powerful generative AI features such as smart status updates, smart summaries, and smart chat.

Bears believe that the company’s stock price is expected to be impacted mainly due to concerns around elevated customer budget scrutiny along with elongated sales cycles delaying deal execution. Additionally, increased economic uncertainty and shifts in market dynamics might weigh over Asana, Inc. (NYSE:ASAN)’s performance moving forward. Next, Asana, Inc. (NYSE:ASAN)’s net revenue retention declined below 100%. This means that its customers are spending less on its products. The company noted that a large number of customers have been renewing with lower commitments. Therefore, growth reacceleration might be a matter of concern in the near term. Additionally, there are concerns about the departure of its CFO Tim Wan.

That being said, Wall Street analysts remain optimistic about the company’s future growth prospects amidst its transition to the enterprise market and the development of Asana AI.  Additionally, Asana, Inc. (NYSE:ASAN) continues to prepare to pursue FedRAMP certification which will help the company expand into government agencies and regulated industries. While Asana, Inc. (NYSE:ASAN) focuses on expanding its enterprise tiers with high-value functionality for strong growth, it expects revenue from Asana AI Studio in the early quarters of the upcoming year.

Asana, Inc. (NYSE:ASAN) continues to enjoy a strong renewal base, and it is confident about the deal conversions for 4Q 2024. Finally, the company’s focus on the enterprise market and AI development should act as primary tailwinds. Asana, Inc. (NYSE:ASAN) focuses on improving the post-sales experience and streamlining its sales processes. These measures, along with leveraging AI products, should drive long-term growth.

As per Wall Street analysts, the shares of Asana, Inc. (NYSE:ASAN) have an average price target of $13.83. Asana, Inc. (NYSE:ASAN) was a popular stock among hedge funds at the end of Q2 2024 with hedge fund positions coming at 23, according to Insider Monkey’s database.