Time May Be Up for This Pandemic Stock
For many, the concept of walking into an office and signing an agreement with pen and paper is a thing of the past. The advents of technology allow for seamless transfer of everyday things like money, communications, and even signatures. DocuSign (NASDAQ: DOCU) is hailed as a market leader in the electronic signature arena. However, while DocuSign has focused primarily on easy transfer of contracts, many of its competitors extend into other digital markets. Now that the market excitement over the stock has faded, is DocuSign still a buy?
DocuSign allows users to send and receive contracts such as rental leases, sales quotes, or other legal documents electronically. Once a user receives the document, they are prompted to "sign" the contract with a pre-created digital signature. The entire process can be completed in a few clicks. While this is certainly convenient, it is not exactly the most disruptive tech, as the underlying features are not entirely proprietary.
It's not surprising that the company faces stiff competition from the likes of other technology companies, namely Adobe and Dropbox. The biggest difference between DocuSign and its competition is that digital signatures are only one component of a broader product suite for Adobe and Dropbox. DocuSign made a number of small investments in ancillary technologies that it is integrating. The lingering questions are whether these investments are any benefit to the company, and how quickly DocuSign is scaling compared to its competition.
Source Fool.com
