DOCU - DocuSign: Improving And AI Prospects But Update Needed (Earnings Preview)

2024-06-03 04:45:26 ET

Summary

• DocuSign's stock value has underperformed compared to other tech names.
• While it has broken even, its analysis reveals more of a mixed picture, both on the revenue and profitability fronts, depending on what the Lexion acquisition brings to the table.
• Thus, it is more of a Hold, pending some updates during the forthcoming earnings call.
• There are also opportunities in the agreement management space where a Deloitte study shows billions of dollars lost annually due to deficiencies.
• Still, amid all the AI hype, it is important to obtain more clarity before investing.

I last covered DocuSign ( DOCU ) in February 2021 with a buy position because of the attractiveness of its electronic signature products in containing the spread of the COVID-19 virus in a world dominated by paper. It rose by about 20% to above $300 but subsequently slid to less than $55....

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