Why Asana Inc. (ASAN) Went Down on Tuesday

We recently compiled a list of the 10 Stocks Battered by Bearish Outlooks. In this article, we are going to take a look at where Asana Inc. (NYSE:ASAN) stands against the other stocks.

Ten firms ended Tuesday suffering a sell-off, as investor sentiment continues to be dampened by macroeconomic uncertainties and bearish outlooks from analysts and their management.

The stocks–three of which belong to the travel and tourism industry–registered losses following lower outlook guidance, taking into account the potential effects of President Donald Trump’s trade war with other countries.

The pessimistic sentiment mirrored the broader market decline, with the Dow Jones slashing another 1.14 percent during the day, the S&P dropping 0.76 percent, and the Nasdaq dipping 0.18 percent.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

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Asana Inc. (NYSE:ASAN)

Asana Inc. (NYSE:ASAN) nosedived by 24.22 percent on Tuesday to end at $12.64 each as investors sold off positions following the resignation of its chief executive officer, and a weak outlook guidance for fiscal year 2026.

According to the company, its co-founder and CEO Dustin Moskovitz decided that he will step down from his post as soon as his replacement is named. He, however, will continue to be a member of the board and retain his shareholdings in the company.

For the first quarter of the fiscal year 2026, Asana Inc. (NYSE:ASAN) expects adjusted earnings per share of $0.02 on revenues of $184.5 million to $186.5 million.

The revenue outlook fell short of the $191 million as expected by analysts.

Meanwhile, Asana Inc. (NYSE:ASAN) said it also expects revenue of $782 million to $790 million for the full year, short of the $803.5 million analysts had been expecting.

Overall ASAN ranks 1st on our list of Tuesday’s worst performers. While we acknowledge the potential of ASAN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASAN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.