Why is DocuSign stock losing money today?

DocuSign stock (DOCU) is losing money and losing money really badly, the stock was selling for more than $233 per share before the market close last night and today it will open at $155 per share, 33% or $80 dollars lower than what it was selling for last night.

DocuSing stock is selling off because of the earnings report that was released recently. The software stock is down by a lot after its fourth-quarter sales report came out. The company issued guidance in the range of $557 million to $563 instead of the $573.8 that analysts expected.

DocuSign Earning report :

·      Earnings: 58 cents per share, adjusted, vs. 46 cents as expected by analysts, according to Refinitiv.

·      Revenue: $545.5 million, vs. $531 million as expected by analysts, according to Refinitiv.

“While we had expected an eventual step down from the peak levels of growth achieved during the height of the pandemic, the environment shifted more quickly than we anticipated,” Springer said on the earnings call. As a result, DocuSign stock crashed by about 33 percent from last night's close.

The stock has tanked by over 50 percent from its $314 52-weeks high price. 

Disclosure:  Investingport owns DocuSign and we may decide to sell anytime from here.