Why Shares of DocuSign Slumped This Week
Shares of (NASDAQ: DOCU) dipped more than 10% this week, according to data from S&P Global Market Intelligence. The e-signature leader didn't report earnings, but it did announce more layoffs, and its buyout talks from private equity got stalled. Investors soured on this news, sending the stock way below its reported take-out price.
DocuSign was one of the pandemic leaders that have recently fallen on hard times. With fewer companies adopting e-signature technology, the company's revenue growth has slowed down considerably.
Last quarter, revenue grew by just 9%, while the company barely generated any net income. This was due to its high levels of sales and marketing spend. Now, in order to get profitable, DocuSign is laying off its sales staff, reportedly 6% of its workforce. Investors may have taken this as a sign the company is still struggling to grow, which could lead to worse earnings in the coming quarters.
Source Fool.com
DocuSign Inc. Stock
Our community is currently low on DocuSign Inc. with 3 Buy predictions and 8 Sell predictions.
A slightly negative potential of -15.21% at a current price of 51.89 € for DocuSign Inc. is the result of a target price of 44 €.
