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DocuSign: Short-Term Volatility But A Promising Long Game

Jan. 01, 2022 5:18 AM ETDocuSign, Inc. (DOCU)25 Comments
Fade The Market profile picture
Fade The Market


  • DocuSign entered the market as an e-signature company but has diversified its platform to a plethora of services.
  • The company experienced a steep decline in share value during the previous months because of slowing growth.
  • There still remains a massive untapped market that DocuSign could leverage to subside the current volatility and attain long-term growth.
  • I am bullish on the stock because of DocuSign’s market leadership that is likely to leverage the market opportunity and play the long game.

DocuSign Headquarters

hapabapa/iStock Editorial via Getty Images


DocuSign, Inc. (NASDAQ:DOCU) conducted its IPO in April 2018 at $38 per share and grew steadily until the stock exploded at the start of the pandemic and rose to a peak of over $310 earlier

This article was written by

Fade The Market profile picture
"A fade is a contrarian investment strategy that involves trading against the prevailing trend."  We look at low-cap stocks that are not covered by mainstream investment firms in search of early opportunities spanning a variety of investment philosophies. The best opportunities are found when looking where others won't. Let us know if you want us to cover any specific tickers and we'll be sure to take a look! Formerly Moonshot Equity Analysis.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.

Business relationship disclosure: This article was researched and written by an employee, Waleed Tariq, reviewed, and submitted by myself.

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Comments (25)

catchoftheday profile picture
No doubt e-signature is here to stay. I have difficulties in judging whether docu has a signifcant moat? From my user experience I ilke both but I understand Docusign has an advantage when it comes to real estate transactions?
It would increase stickiness of Adobe's products if they dominate the e-signature market. I would expect them to heavily invest in gaining market share and improving their product. Your thoughts?
The Clairvoyant profile picture
I bought some DocuSign this morning. Good long term investment, but short term volatility is likely to continue for a while.
DOCU is a buy at $80, not a buy at $130.
Longbow Archer profile picture
EV/Sales of 15 is still too high for this small moat/small TAM company.
theWayissimple1111 profile picture
The CEO may have bought some DOCU, but the COO has been unloading hand over fist. The ONLY buy in 9 months was the CEO.
Et20 profile picture
Long DOCU. Don't see why people only say no moat when the share price dropped
@Et20 Wait until Cathie Woods is forced to sell more and more stocks due to a run on her funds. Down goes the stocks with bloated p/e’s such as DOCU.
No Guilt profile picture
@Cantankerous Cat

Do you think PE is the only way to value a stock?

Do you go dumpster diving for no growth low PE stocks?
@No Guilt
Couldn't agree more.
With such a focus on PE, should be looking at dividend plays, not growth stocks.
Does DOCU have any real competition right now? Just Googling I found:

Adobe Sign.
Zoho Sign.
OneSpan Sign.
No more competition than Google has on search. Right now, DOCU is the standard.
No Guilt profile picture

Docusign is the best

Adobe Sign is a legitimate competitor

The other low cost cheap stuff… many will go out of business
Longbow Archer profile picture
@MutualCore People (consumer end user) really don't care who/what provides the eSign service. It's an "add on" with relatively low barrier to entry (compared to say video conferencing which is a nightmare to debug/optimize) and low moat (whatever eSign is there is what the signer will use).
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