Shares of productivity tool Asana (ASAN -16.22%) jumped as much as 21.7% in trading early this week, according to data provided by S&P Global Market Intelligence, before plunging down to earth. From its Thursday highs, shares have fallen 15%.
The news early in the week was that founder and CEO Dustin Moskovitz bought about $79 million in shares, continuing a more than $1 billion buying spree of the company's stock over the last eight months. When insiders buy a company's stock, it can often be a bullish sign. And in the case of Asana, this is the founder who appears to be going all-in on the stock.
Later in the week, tech stocks took a beating as earnings continued to come out and in most cases underwhelmed investors. It wasn't that growth numbers from last year were bad, but rather that expectations for 2022 growth were underwhelming, causing many high-growth stocks to falter.
While it was a wild ride this week that ended up with Asana shares trading only slightly higher, I feel a little more bullish on the stock than a week ago. The founder buying stock is always a good thing, and while we won't know what fourth-quarter results look like until early March, we know the person with the most knowledge about the company is still bullish. Especially after the pullback later in the week, this is a great stock to buy right now.