DocuSign Stock May Not Be Overvalued Anymore

Dec. 16, 2022 12:55 PM ETDocuSign, Inc. (DOCU) Stock1 Comment
Dilantha De Silva profile picture
Dilantha De Silva
12.04K Followers

Summary

  • Since the release of Q3 earnings last week, DocuSign stock has surged more than 33% so far, but the company has still lost 64% of its market value this year.
  • With DocuSign yet to break through to profitability, despite years of double-digit revenue growth, it's reasonable to evaluate whether DocuSign, although a disruptive business, will make money for its shareholders.
  • To get a clear picture of what the future holds for DOCU, investors need to look at the demand environment.
  • Although there is no doubt about the disruptive nature of DocuSign's business, investors need to assess whether there is a sufficient margin of safety to invest in the business today.

DocuSign headquarters building

Michael Vi

Following a marginal earnings beat in Fiscal Q2 and a notable earnings miss in Fiscal Q1, DocuSign, Inc. (NASDAQ:DOCU) came back strongly in the fiscal third quarter of 2023, registering a meaningful earnings surprise on December 8 that

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This article was written by

Dilantha De Silva profile picture
12.04K Followers
Dilantha De Silva is an experienced equity analyst and investment researcher with over 10 years in the investment industry. He writes insightful articles for Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, with a significant following on Seeking Alpha. Dilantha’s expertise spans across various sectors, with a particular focus on small-cap stocks that are overlooked by Wall Street analysts. He is a CFA Level III candidate and an Associate Member of the Chartered Institute for Securities and Investment (CISI). Dilantha has been featured on CNBC and Bloomberg, and his work has been prominently showcased on Nasdaq, Yahoo Finance, and other leading investment platforms. When not analyzing stocks and writing, Dilantha is involved in private equity transactions, including acquiring and managing businesses.

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