Has DocuSign Stock Bottomed Out?
DocuSign (NASDAQ: DOCU) is a great example of a pandemic darling that has come crashing down this year, effectively giving back all of its gains and now even trading below pre-pandemic levels. The company's electronic agreements and signatures were symbolic of the future in 2020 and 2021 as remote work was on the rise and companies were becoming more efficient and tech-savvy.
In 2022, that optimism has cooled -- drastically. Shares of DocuSign have plummeted 63% this year, making the S&P 500's decline of 18% look like a great return. However, the tech stock has been rising of late and is coming off an encouraging earnings report. Has DocuSign already bottomed out, and is now a good time to invest in the business?
On Dec. 9, shares of DocuSign jumped by as much as 17% after the company released its third-quarter numbers (for the period ending Oct. 31), which were better than expected. That's a welcome change for investors versus the 40% drop it incurred a year ago when a soft guidance sent the stock crashing. Nowadays, expectations are more modest for the business, making it less likely that there will be a big disappointment.
Source Fool.com
