While the shares have had a rocky few years, Docusign is generating profitable growth. The company sees an opportunity to leverage artificial intelligence across its platform.
Nvidia has been a huge AI winner, but with AI in its early innings, it still has a long runway of growth. Microsoft continues to lead the way in AI for cloud computing and software.
In the closing of the recent trading day, DocuSign (DOCU) stood at $57.14, denoting a +1.34% change from the preceding trading day.
DocuSign Inc. (DOCU, Financial) has revolutionized the way businesses handle agreements, transitioning from paper-based processes to electronic signatures. Founded in 2003 by Tom Gonser, the Seattle-based company's journey began with the launch of its first software-as-a-service platform in 2004, enabling electronic document signing and laying the groundwork for its future growth.
Wall Street history shows that long-term stock investing is one of the key ingredients for lasting financial success. The S&P 500 index, regarded as the benchmark for U.S. stocks, has shown a historical average annualized return of around 10% since its inception in 1928 through the end of 2023.
Docusign has leveraged AI to build a competitive advantage, but it faces considerable competition. Its valuation is near record lows.
DOCU remains laser focused on generating new growth opportunities, recently through the Lexion acquisition and new Intelligent Agreement Management [IAM] platform announced in April 2024. With intensified partnerships and strategic use of AI, the SaaS company aims to launch new AI-powered SaaS segments while catering to different target audiences. Perhaps this is why DOCU feels confident enough to raise its FY2025 guidance, as its Dollar Net Retention rate improves and Remaining Performance Obligation stabilizes.
UiPath stock has been thrown into the bargain bin after weak guidance. Docusign is looking to transform into a platform company.
DocuSign (DOCU) is experiencing improved performance with customers managed by the direct sales force.
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Docusign rebranded itself this year, now focusing on helping companies manage agreements. The new approach will allow it to offer more products and services to customers.
Shares of Docusign are more than 80% below the all-time high the stock reached years ago. Cost-cutting measures have pulled its bottom line out of negative territory.