NASDAQ:DOCU

Docusign (DOCU)

50.44
+3.40 (7.23%)
as of Jul 24, 2026, 8:00:00 pm Market Open.
93 watching
0
DON'T BUY
They reported a terrible quarter and sank 42%. A poorly executed quarter and a slowdown in business that the CEO didn't see. But investors hid behind this in the wake of Omicron and got hit badly today. DOCU dragged down other tech stocks, too. It was trading at 150x earnings which made investors consider the value of tech stocks in general.
DON'T BUY
A Covid play, trading at 150x earnings, which is too rich. Pass though he's a little on the fence about this because he's a huge believer in their product.
COMMENT
An exciting company offering a technology that will be widely adopted, but the valuation is trading at 26x revenue (not earnings). Too high. Too much future success is already priced in.
HOLD
He's tempted to say buy. DOCU will come out of this pandemic strong.
WATCH
They're about to report. Valuation is ridiculous around 100x 2021, but they have earnings growth (likely a secular trend that won't fade). He's fascinated to see how it'll react post earnings. Sure, it's worth a look.
HOLD

This and Zoom and considered lockdown stocks and are currently out of favour, but he think this is worth holding long-term. But you must hold this for a long while.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jan 07/21, Down 20.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DOCU has triggered its stop at $190. To remain disciplined, we recommend covering the position. We will look for better opportunities.
BUY
It is oddly stalled, flat-lining. It seems the business of making documents happen remotely should continue to do well as we recover.
DON'T BUY
It's down a lot from its high, and is part of the stay-at-home trade, which is way out of fashion now. He needs to see a good quarter to prove DOC isn't just a stay at home.
BUY ON WEAKNESS
It's done incredibly well during the pandemic as e-signatures blossomed. Growth will continue, but that rate may slow this year. Also, the valuation is too high now. It's a growth-momentum name.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly As the roll out of vaccines is falling behind projections in North America, the prospect of continued growth in electronic document signings could likely continue, contrary to several analyst opinions. Pipe Sandler has taken this view and has upgraded their outlook on the stock to $300. We would buy this with a stop-loss at $190, looking to achieve $285 -- about 20% upside. (Analysts’ price target is $275.39)
COMMENT
The stock sold off after running up and slid along with all tech stocks this past month. It's pulled back 25% from its highs, but still nearly triple YTD. It's not cheap, but it has a new AI product that looks promising. Is it time to buy on weakness?
SELL
A game changer stock. They use it in their office for official document signing. Revenues have increased sharply, but the share price is now 25 times sales -- very expensive. You have to consider what the future length of runway looks like. He would caution against buying into high multiple stocks at the moment. He would be a seller on this right now in the event personal tax rates increase in the future.
BUY
They make e-signatures and contract management. DOCU has benefitted from this stay-at-home pandemic. They're moving into managing entire documents which will lead to decent growth and better pricing on their software. The U.S. is moving away from paper in business and more into digital, which is a tailwind.
DON'T BUY

Tech, work from home stocks have run up and DOCU is getting rich with a high valuation. Look at MSFT instead.

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