Software stocks plunged amid the current tech rout, driven by the Fed’s tighter monetary policy and an economic slowdown. The tech-heavy Nasdaq Composite index has declined…
23.3% year-to-date.
However, the recent technology-sector meltdown has created enormous buying opportunities, with fundamentally-sound tech stocks trading at impressive discounts. The growing use of 5G wireless networks, cloud computing, AI, self-driving vehicles, hybrid architecture, and IoT should drive the industry’s growth over the long term.
Therefore, Wall Street analysts predict beaten-down software stocks MicroStrategy Incorporated (MSTR), Asana, Inc. (ASAN), Qualtrics International Inc. (XM), Weave Communications, Inc. (WEAV), and Domo, Inc. (DOMO) will soar in price in the near term.
MicroStrategy Incorporated (MSTR)
MSTR is an analytics and business intelligence company that designs, develops, markets, and sells its software platform through licensing arrangements, cloud subscriptions, and related services. The Tysons Corner, Va.-based company’s core product offering is its MicroStrategy platform.
Click here to check out our Software Industry Report for 2022
On March 1, Toyota Astra Motor partnered with MSTR to drive market leadership. Michael J. Saylor, CEO of MicroStrategy, said, “We had an increase in Cloud revenue and billings, with growing adoption of the MicroStrategy platform by new and existing customers.”
MSTR’s cash and cash equivalents increased 46.3% from the prior-year quarter to $92.68 million in its fiscal quarter ended March 31, 2022. Its operating expenses for the quarter came in at $263.60 million, reflecting a 7% decrease year-over-year.
The Street expects the company’s EPS to increase 99.5% year-over-year in its fiscal second quarter (ending June 30, 2022). The $532.11 million consensus revenue estimate for its fiscal 2023 (ending Dec. 31, 2023) represents a 5.1% improvement year-over-year.
The stock has slumped 61.8% in price over the past six months to close yesterday’s trading session at $240.00.
Among four analysts that rated MSTR, three rated it Buy, while one rated it Hold. The 12-month median price target of $539.33 indicates a 129.1% potential upside from its last closing price of $235.44. The price targets range from a low of $215.00 to a high of $950.00.
Asana, Inc. (ASAN)
San Francisco-based ASAN offers a work management platform that enables teams to orchestrate work, from daily tasks to cross-functional strategic initiatives, and manage product launches, marketing campaigns, and organization-wide goal settings. It serves customers in technology, retail, education, non-profit, government, healthcare, media, and financial services industries.
On May 23, ASAN partnered with Align Technology, a leading global medical device company, to bring New Work management solutions to Invisalign-trained dental and orthodontic practices in the U.S. This new solution is expected to improve patient care for its customers.
ASAN’s revenue has increased 57% year-over-year to $120.64 million in its fiscal 2023 first quarter, ended April 30, 2022, while its gross profit grew 57.4% from its year-ago value to $108.21 million.
The 127.61 million consensus revenue estimate for its fiscal second quarter (ending July 31, 2022) represents a 42.6% improvement year-over-year. The Street expects the company’s EPS to increase 19.2% year-over-year in fiscal 2024 (ending Jan. 31, 2024).
ASAN stock slumped 69.6% in price year-to-date to close the last trading session at $22.68.
Among the 12 Wall Street analysts that rated ASAN, eight rated it Buy, three rated it Hold, and one rated it Sell. The 12-month median price target of $43.67 indicates a 92.3% potential upside from its last closing price of $22.71. The price targets range from a low of $21.00 to a high of $88.00.
Qualtrics International Inc. (XM)
XM in Provo, Utah, provides an experienced management (XM) platform to manage customer, employee, brand, and product experiences. Its Qualtrics XM Platform is a system of action that guides users with specific instructions for improvement and automated actions to improve experiences.
On November 15, XM partnered with…
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