What's Going On With DocuSign Shares On Friday?
Portfolio Pulse from Nabaparna Bhattacharya
DocuSign, Inc. (NASDAQ:DOCU) shares are trading lower in the premarket session on Friday following analyst downgrades and a mixed earnings report. Analysts from BofA Securities, Baird, and Needham have all maintained neutral ratings but lowered their price targets. Despite a solid 5% growth in billings, margins contracted slightly. The company reported a revenue beat and announced a $1 billion increase to its stock repurchase program. DocuSign expects second-quarter revenue to be in the range of $725 million to $729 million. The stock has lost over 4.5% in the past year and is down 7.49% to $50.51 in premarket trading.

June 07, 2024 | 1:06 pm
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NEGATIVE IMPACT
Pacer US Cash Cows 100 ETF (COWZ) may see minor impact due to its exposure to DocuSign, which is experiencing a decline in share price following analyst downgrades and mixed earnings results.
COWZ has exposure to DocuSign, and the decline in DOCU's share price could have a minor negative impact on the ETF's performance.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 30
NEGATIVE IMPACT
DocuSign shares are trading lower due to analyst downgrades and mixed Q1 results. Despite a revenue beat and a $1 billion increase in the stock repurchase program, margins contracted slightly, and analysts have lowered their price targets.
The stock is trading lower due to a combination of analyst downgrades and mixed earnings results. The contraction in margins and lowered price targets by multiple analysts are significant negative factors, despite the positive news of a revenue beat and increased stock repurchase program.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Direxion Work From Home ETF (WFH) may experience a slight negative impact due to its exposure to DocuSign, which is seeing a decline in share price following analyst downgrades and mixed earnings results.
WFH has exposure to DocuSign, and the decline in DOCU's share price could have a minor negative impact on the ETF's performance.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 30