DocuSign: Follow The CEO, Not ARKK

 

  • DocuSign shocked the market back in December with a major warning for FQ4'22.
  • The stock collapse has the CEO loading up on shares while ARK Invest has aggressively sold their much larger position.
  • The company is back on a trend towards sustainable 25% growth making the stock valuation more appealing here at 10x forward sales.
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While most of the high flying tech stocks have collapsed due to sales trends decelerating, DocuSign (DOCU) actually plunged on a massive guide down. The end result has been the CEO loading up on shares for the long term and an influential ETF dumping shares. My investment thesis is now Neutral on the stock until sales trends normalize.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Jan. 24

Possibly not the lows in $DOCU yet, but this was the prescribed weakness. Investors can now start following the CEO into the long term story. 


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