Software Stock Needs Another Post-Earnings Melt Up

Core Insights - Asana Inc (NYSE:ASAN) experienced a strong finish in 2024 with a 43.6% gain post-earnings on December 6, indicating a need for continued positive price reactions in upcoming earnings reports [1] - The stock has seen a 9.5% decline in 2025 and is currently 34% below its three-year high of $27.77, although it is testing a significant ascending 126-day trendline [2] - The options market anticipates a larger than usual post-earnings move of 22.1%, compared to an average next-day move of 14.2% over the last two years [3] Market Sentiment - There is significant short squeeze potential for Asana, with 15.6% of the stock's float sold short, and bearish positions have increased by 5% recently [4] - Despite a 35.8% increase in the last six months, analyst sentiment remains pessimistic, with 11 out of 15 brokerages maintaining "hold" or "strong sell" ratings, suggesting that a positive earnings report could alter some bearish views [5]