DocuSign Stock: Will The Growth Continue?

Mar. 15, 2021 2:34 PM ETDocuSign, Inc. (DOCU) StockDOCU24 Comments

Summary

  • DocuSign is the leader in online signature services. The stock moved up rapidly through 2020 as investors treated the name as a work from home proxy.
  • The company is older than many realize. Established in 2003, the stock was a slow grower for many years until the Covid crisis accelerant.
  • DocuSign stock has cooled in recent weeks, despite an exceptionally strong earnings report and increased earnings guide.
  • So the question is - will the growth in the stock price resume?
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A Refresher On DocuSign

DocuSign (NASDAQ:DOCU) is as the name suggests, primarily an e-signature business. Established in 2003, the company's IPO was not until April 2018. That's a fairly long period of time for a tech company to remain in private hands; the more banzai names tend to come out of the gate a little earlier. Indeed DocuSign is something of a sleeper stock in our view. Not sleep-y but sleep-er. For the purposes of this note we can ignore all the new stuff that the company is busily producing and marketing under the toe-curlingly-awful moniker of the "Agreement Cloud". Let's just think about e-signature for a while, which remains the core purpose of the company. E-signatures have been a

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This article was written by

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Analyst’s Disclosure:I am/we are long DOCU.

Business relationship disclosure:See disclaimer text at the top of this article.


Cestrian Capital Research, Inc staff personal account(s) hold long position(s) in DOCU.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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