Is It Time to Ditch DocuSign Stock?

After reporting earnings on June 9, DocuSign's (NASDAQ: DOCU) stock crashed 25%. This sell-off helped push DocuSign shares down more than 80% from their all-time high.

This fall is pretty dramatic, but is it deserved? After all, DocuSign gained many customers over the past two years. But with the CEO stepping down immediately, a wrench has been thrown into the business. While I can't predict the future, I think this last quarter had some obvious signals investors and potential investors must be aware of.

DocuSign's software is relatively self-explanatory: It allows parties to sign legally binding contracts without being there in person. Additionally, it offers a contract lifecycle management product that helps users quickly and efficiently process contracts, saving time and money. These tools were vital during the pandemic as few deals were closed in person.

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Source Fool.com