DocuSign Stock: What Now?

Dec. 08, 2021 2:52 PM ETDocuSign, Inc. (DOCU) StockDOCU83 Comments
From Growth to Value
Investing Group Leader

Summary

  • Last week, DocuSign reported its quarterly results and immediately the stock cratered. On Friday, the stock lost 42% on a single day.
  • The results were somewhat disappointing on some metrics but a 42% drop is an absolute overreaction.
  • Noise to ignore about DocuSign: it has no moat, it's unprofitable and it has a weak balance sheet. We debunk these three statements.
  • The stock is even cheaper now than when the pandemic started and it has a lot of opportunities.
  • The company is profitable and priced cheaply.
  • I do much more than just articles at Potential Multibaggers: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Mens op het werk die juridisch contract ondertekent met behulp van digitale handtekening

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Introduction

What a brutal market this is. Last week, DocuSign (NASDAQ:DOCU) released its earnings. On Friday, the stock dropped a whopping 42%. That's a $19B gone up in smoke from its market cap of $45B. Absolutely brutal.

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        This article was written by

        From Growth to Value
        33.73K Followers

        From Growth To Value (Kris) is an individual investor with a long-term perspective. He targets high-quality disruptive businesses that have early multibagger potential. His rigorous research process provides him and his readers conviction in these companies.

        He invests personally in the ideas he shares and leads the investing group Potential Multibaggers. Features of the service include: best buy list, access to his personal portfolio and watchlist, 5+ articles of individual stock coverage, weekly reviews, regular webinars, overall quality scores, and a vibrant chat for discussions. Learn more.

        Analyst’s Disclosure:I/we have a beneficial long position in the shares of DOCU, ADBE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

        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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