Software company DocuSign’s (DOCU) shares lost nearly 42% in price on December 3 and hit their 52-week low of $131.51. But can the stock rebound based on the company’s dominant market position and consistent product and services solutions? Let’s find out.Cloud-based software provider DocuSign, Inc. (NASDAQ:DOCU) is known primarily for its DocuSign eSignature solution and Agreement Cloud. The San Francisco-based company witnessed massive demand for its solutions amid the COVID-19 pandemic with the heightened remote working culture. However, the stock has lost 52.3% in price over the past month to close Friday’s trading session at $135.09, after hitting its 52-week low of $131.51.
DOCU’s total revenue for its fiscal third quarter, ended October 31, 2021, increased 42.4% year-over-year to $545.46 million. Its net loss came in at $5.68 million compared to $58.49 million in the year-ago period. Also, its billings were $565.20 million, up 28% year-over-year. However, the stock declined by 42% on Friday, its biggest retreat ever, amid concerns of slowing demand for e-signatures as businesses return to their offices.
The company’s billings and revenue guidance missed expectations. Its $557 million - $563 million fourth-quarter revenue projection was below Wall Street’s expectations. Consequently, several analysts downgraded DOCU’s ratings. In addition, hedge fund’s interest in the stock has declined. So, DOCU’s near-term prospects look uncertain.