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Jim Cramer - Mad MoneyAsanaASANDON'T BUYSep 30, 2020

Another fast-growing cloud play that launched in a direct listing today. Reference price was $12, the opening price was $27, and is closed at $28.80. Asana was founded by a couple of Facebook co-founders. It offers a work management software that helps workers (including remote workers) to save time and be more productive. Margins have been sinking as ASAN is burning cash. They're spending a lot on marketing, up 92% in the first half of 2020. Revenues rose too, though in that period. Problem is this software management space is getting crowded with a lot of competitors which are already turning a profit. Also direct-listing tech stocks have a lousy track record. This is priced for perfection.

Jim Cramer - Mad Money

Unlock Rating

$28.80

Stock price when the opinion was issued

$7.39

As of Jun 12, 2026. Market Open.

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DON'T BUY

This is a loss making company and is not making a lot of cash. The power is now in the hands of the lenders and not the borrowers so there may not be a lot of money in the market to fund these kinds of companies. He likes cash flow generators.

DON'T BUY

They're too early stage, and he wants to see profitability first.

WAIT

They compete with Slack, for example, but lead this sector. He used to own it until early 2022 with many software stocks. He targets $20.50. He will rebuy when the macro picture gets clearer. Boasts 30-35% growth. Asana has deep pockets.

RISKY

He uses their software to manage data among customers and employees. A young company and aren't making money yet. Enjoyed a rally during the pandemic, but has fallen since then. This could emerge strong under their leadership.Hang on and see how it recovers. Wait 5 years before you know it's a winner. Be patient.

BUY

ASAN vs. CTS Go with ASAN, it's the cutting edge company out there for collaboration and work management. ASAN's market cap is only 13B, but it has heavy hitters at the top. 12-month price target of $103.40.

PAST TOP PICK

(A Top Pick Nov 24/20, Up 367%) Fantastic story. Addressable market of at least $30B. A leader in the space. Price target of $128.50. You could buy in thirds here at $106,101, and 95. Put a stop between $88-90.

BUY

Very good product. One of the high flyers in tech. Downturn in the sector with people going back to the office. If you believe in it and you're prepared to hold it for 5-10 years, it's a good time to buy. It will continue to grow and have a major share of the market.

BUY ON WEAKNESS

He sold at his target of $80, and now it's up. Phenomenal company. Work collaboration/management space. Growth rates are phenomenal, valuation is conservative, smart co-founders. You could buy it here around $127, more at 100, and then at 75. $170 price target in 12 months.

DON'T BUY

Collaboration software. Topline has had phenomenal growth. Operating leverage concerns him. Losses are growing faster than revenue. If we get a correction away from tech stocks, this kind of company will really get hit. Interesting company, but risk/reward is too binary.

SELL

Leader in collaboration. Lots of competition. Aims to provide clarity at every level of an organization. Phenomenal company. Great leadership. He sold at his price target. It's rich.

PARTIAL SELL

It is a software-as-a-service. He owns another of these. It is at 45 times current year revenue and he thinks there is better value elsewhere in the tech space. It is a good time to trim.

BUY

Software used to schedule projects. Growing rapidly with remote work trends, and this will continue as it's early days. Prepare for volatility. He favours Twilio.

DON'T BUY

2020 IPOs cost too much, and are worth buying now that they are out of style and cheaper. They make work management software. It's a real rollercoaster. He still doesn't like its fundamentals--18x sales and a 38% growth rate.

BUY

Leader in collaboration/work management. Increases accountability at every level. Increasing interest rates fostered concerns about its valuation. Price target of $37.25. Likes it.

BUY

New work management/collaboration space leader. Growth has been faster than peers. Thinks growth will be a lot higher than the estimated 30% per year. Especially likes its longevity. Pick some up around $30-33. If you own it, hold, and take profit around $42-43.

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