DocuSign Stock Has Cratered: Time to Buy?

Just when DocuSign (NASDAQ: DOCU) stock's brutal sell-off looked like it couldn't get any worse, it did. The e-signature and electronic document company's stock fell more than 20% on Friday, following the company's fiscal fourth-quarter earnings report. This put the stock down more than 75% from its 52-week high of $314.76. The stock has essentially lost all of the gains it saw as a result of remote work and collaboration during the pandemic.

Has the growth stock's sell-off gone too far? Let's take a look.

Despite the stock's sharp pullback on Friday, the company's fiscal fourth-quarter results were actually quite impressive. DocuSign's revenue rose 35% year over year during the period, hitting approximately $581 million. This was ahead of analysts' average forecast for revenue of $561 million. The company's non-GAAP (adjusted) earnings per share of $0.48 was up substantially from $0.37 in the year-ago period. Free cash flow also rose nicely, increasing from $44 million in the year-ago quarter to $70.3 million.

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Source Fool.com