Why is DocuSign stock down 20% after its earnings report?
In addition, the market is sensitive to growth rates of high-PE stocks in the current environment, so it’s not surprising to see that DocuSign stock is down by more than 20% after the disappointing report.
Should you buy DocuSign stock during a pandemic?
Longer-term, DocuSign's prospects are solid. The near term may be volatile while businesses recalibrate their operations as the pandemic evolves into a less restrictive phase. E-signature solutions save time and money for companies and clients.
Is DocuSign’s fundamentals strong despite extreme volatility?
Despite the extreme volatility, we highlight what remains overall solid fundamentals. DocuSign continues to generate positive operating metrics by capturing an expanding market opportunity. The company is profitable with a net cash balance sheet position supporting new growth initiatives.
Is DocuSign here to stay?
We can argue about growth rates and financial margins, but it's clear to us that DocuSign is here to stay. The company is an established leader in the category that may still be in the early stages of reaching its full market potential. Management believes it operates within a $50 billion market opportunity, compared to its $2.
Will DocuSign stock go up?
Stock Price Forecast The 15 analysts offering 12-month price forecasts for DocuSign Inc have a median target of 75.00, with a high estimate of 151.00 and a low estimate of 50.00. The median estimate represents a +23.64% increase from the last price of 60.66.
Is DocuSign a strong buy?
DocuSign delivered a modest top line beat and in-line earnings for Q4 FY 2022, and there are expectations of a further slowdown in revenue growth for DOCU in both the upcoming quarter and fiscal year. DOCU's shares have fallen by -50.6% year-to-date, as Work-From-Home beneficiaries fell out of favor with investors.
Is DocuSign losing money?
The company easily topped analysts' expectations for the fourth quarter with Thursday afternoon's report, detailing a loss of $30.45 million, or 15 cents a share, on sales of $564 million, up from $410.2 million a year ago.
Is DocuSign undervalued?
Thanks to DocuSign's balanced Rule of 40 inputs, continued net-dollar-retention strength, and discounted share price, the stock look wildly undervalued and could be a great option for long-term buyers. Josh Kohn-Lindquist owns DocuSign. The Motley Fool owns and recommends DocuSign.
Is DocuSign still growing?
Like other big pandemic winners, DocuSign isn't likely to experience the growth it did in 2021. Extreme demand for e-signature among employers scrambling to go paperless drove a 49% surge in sales. Yet the long-term outlook is as solid as ever for a software pioneer that enjoys a significant first-mover advantage.
What is the future of DocuSign stock?
Fortunately for DocuSign, the company's 60% market share comfortably leads the industry. If DocuSign can maintain just 15% of the market in 2030, the company would generate an annual revenue of $9.3 billion, translating to an average annualized growth of 20% from 2021.
Is DocuSign the future?
The growth DocuSign experienced over the past several years is unlikely to continue. Analysts forecast that the company's revenue will be $3.88 billion in fiscal year 2025, representing an average annualized growth of 22%.
Is DocuSign a good long term investment?
DocuSign has excellent long-term prospects and is selling at its cheapest valuation ever.
Is DocuSign overvalued?
DocuSign is overvalued for what's on offer. Paying 40x non-GAAP operating profits is too high a multiple. DocuSign has a $200 million share buyback program, that will make no meaningful difference to the number of shares outstanding.
Will DocuSign bounce back?
DocuSign (DOCU) Management still expects 2022 billings of $2.3 billion, and its technology is likely to grow in relevance in the future. The current selloff is likely a fair reckoning for the stock after a gangbuster, pandemic-fueled 2020; but, at 64% off its 2021 high, the stock may be due for a bounce in 2022.
Does docu recover?
DOCU Stock Will Mend its Wounds This Year The correction took DOCU stock back to its May 2020 levels quickly. They didn't even slow down at $200 per share where they had solid support waiting. This is an indication that the return to the highs is not likely to happen anytime soon.
Which shares are undervalued?
Undervalued stocksS.No.NameCMP Rs.1.Forbes & Co382.802.Standard Inds.35.153.Kwality Pharma357.754.Elpro Internatio64.4522 more rows
What happened
DocuSign ( NASDAQ:DOCU) stock tumbled 11.5% in November as work-from-home stocks took a beating. There wasn't any major company-specific news for DocuSign last month, but it couldn't overcome a broader sell-off.
So what
DocuSign's November was one of those rare instances of a stock rising or falling without any major news. The company released a terrible earnings report in the first week of December, which sent the stock another 40% lower.
Now what
A quarter that was considered disastrous still featured 28% revenue growth and a wider-than-expected operating profit margin. The company forecasts further growth next quarter, and it operates a cash-flow-positive business.
