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Should You Buy the Post Earnings Dip in DocuSign? -Breaking

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© Reuters. DocuSign: Should you buy the DocuSign Post Earnings Dip

Software company DocuSign’s (DOCU) shares lost nearly 42% in price on December 3 and hit their 52-week low of $131.51. But can the stock rebound based on the company’s dominant market position and consistent product and services solutions? Let’s find out.Cloud-based software provider DocuSign, Inc. (NASDAQ:) is known primarily for its DocuSign eSignature solution and Agreement Cloud. The company, which is based in San Francisco, saw a huge demand for its products during the COVID-19 pandemic and the increased remote work culture. However, the stock has lost 52.3% in price over the past month to close Friday’s trading session at $135.09, after hitting its 52-week low of $131.51.

DOCU’s total revenue for its fiscal third quarter, ended October 31, 2021, increased 42.4% year-over-year to $545.46 million. The net loss was $5.68 Million, compared with $58.49 millions in the previous year. The company’s billings grew 28% in the past year to $565.20 million. The stock dropped 42% on Friday. This was its largest ever decline. It is now worried about slower demand for electronic signatures as more businesses return to offices.

The company’s billings and revenue guidance missed expectations. Its $557 million – $563 million fourth-quarter revenue projection was below Wall Street’s expectations. Consequently, several analysts downgraded DOCU’s ratings. In addition, hedge fund’s interest in the stock has declined. So, DOCU’s near-term prospects look uncertain.

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