This agreement service provider might be a steal now that it's more than 80% below its all time high

DocuSign Inc. (DOCU) shares are selling at a more reasonable price than investors are accustomed to seeing after losing more than 80% of their value in less than a year.
WAN CHAI, Hong Kong - Aug. 12, 2022 - PRLog -- It may be a good time to purchase now that this high-growth stock has been squeezed down to value stock levels.

DOCU's largest drop was a reaction to the company's recent dismal forward guidance, which it communicated with investors. On a closer analysis, the company's long-term prognosis appears to be far brighter than its stock price performance implies.

Dan Springer, the company's CEO, has stepped down to make way for new leadership. The stock dropped roughly 25% in a single trading day after he released a poor first-quarter earnings report a few weeks ago.

While the business seeks for a new CEO, Board Chairman Mary Agnes Wilderotter will act as temporary CEO. Wilderotter led Frontier Communications for nearly a decade. Unfortunately, we are still unsure whether her prior knowledge will assist this organization in maintaining its lead in the agreement services market.

DOCU had to revise its expectation for sales to new customers plus subscription renewals, a statistic known as billings, when reporting first-quarter results. Instead of $2.706 billion to $2.726 billion, the business anticipates billings of $2.521 billion to $2.541 billion for its fiscal year ending January 31, 2023. Achieving the midpoint of this revised range would result in a year-over-year growth rate of only 3%.

The delay might be attributed to competition from a flurry of tiny start-ups as well as a major competitor. Adobe Inc. (ADBE), the creator of the portable document format (PDF), operates a competitive e-signature service. Because Adobe's software subscriptions are required for all sorts of creative projects, convincing these consumers to select DOCU may prove difficult.

DOCU's stock has dropped significantly but it is still selling at about 36.6 time's forward-looking profit estimates. That's a respectable multiple for a firm growing at a double-digit rate, not one in trouble. If the firm continues to show symptoms of stagnation, this stock might drop even more.

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