DocuSign, Inc. (NASDAQ: DOCU), a provider of cloud-based electronic signature solutions, assists businesses and individuals to manage electronic agreements. It created a secured signing process, with lower costs and less risk.
Though the economy’s reopening slowed demand for DocuSign’s products and services, the company still has a large total addressable market and grounds for long-term development.
Recently, DocuSign and tech giant Microsoft Corporation (MSFT) expanded their global strategic partnership. This alliance will make it easier for individuals to collaborate more effectively.
Following the news, shares of DocuSign rose 4.4% in the extended trading session on Tuesday, while MSFT stock remained almost unchanged.
Every company is striving to get digitally transformed. As a result, DocuSign’s new integrations and capabilities across Microsoft’s business solutions will increasingly assist customers to manage agreements in the cloud from any location.
Per the terms of the agreement, the new innovations include DocuSign eSignature for Microsoft Teams, DocuSign CLM for Microsoft Word, DocuSign eSignature for Microsoft 365, and many more.
DocuSign CEO Dan Springer said, “Microsoft is critical to our vision of streamlining the agreement process for our customers, wherever they get work done. With so much of the world getting work done in Microsoft’s applications and cloud services, we are thrilled to be deepening our relationship with Microsoft to jointly deliver on the promise of the anywhere economy.”
Attrition at Microsoft
In a separate Wall Street Journal report, it was stated that Alex Kipman, Microsoft’s Augmented-Reality Chief, is stepping down amid attrition issues in his team.
Microsoft’s cloud and artificial intelligence group EVP Scott Guthrie wrote in an internal email, “We have mutually decided that this is the right time for him to leave the company to pursue other opportunities. I appreciate the tremendous vision Alex has provided to Microsoft over the years, and all that he has done to advance our Metaverse offerings.”
Wall Street’s Take
Recently, JMP Securities analyst Patrick Walravens maintained a Buy rating and a price target of $180 (105.15% upside potential) on DocuSign.
Overall, the stock has a Hold consensus rating based on six Buys, nine Holds, and two Sells. That’s after a 42.93% slide in DocuSign’s share price over the past six months. The average DocuSign price target of $97.57 suggests an upside of 11.2% from current levels.
Despite DocuSign’s long-term possibilities, hedge funds and investors holding portfolios on TipRanks have a very negative outlook on DOCU stock. Per TipRanks’ Hedge Fund Trading Activity tool, the cumulative change in holdings across all 16 hedge funds that were active in the last quarter was a decrease of 3.1 million shares. Also, TipRanks’ Stock Investors tool shows that 2.8% of investors maintaining portfolios on TipRanks decreased their exposure to DOCU stock over the past 30 days.
As a result, investors may be cautious of the stock in the near term.
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