DocuSign (NASDAQ: $DOCU) Stock Surges on Strong EarningsDocuSign (NASDAQ: NASDAQ:DOCU ) shares jumped more than 4 % in trading hours on Friday after the e-signature and document management company topped analysts’ quarterly estimates and issued better-than-expected current-quarter and full-year sales outlooks as customers increased their IT spend.
The San Francisco-based company posted fiscal 2024 fourth-quarter adjusted earnings of 76 per share on revenue of $712.4 million, whereas Wall Street had expected earnings of 65 cents a share on sales of $698.3 million.
Billings for the quarter, which ended Jan. 31, rose 13% from a year earlier to $833.1 million, entwining the company’s earlier guidance range of $756 million to $768 million. DocuSign ( NASDAQ:DOCU ) said closing several deals earlier than expected boosted billings during the period.
Looking ahead, the company projects revenue for the current quarter to range between $704 million and $708 million, with billings of $685 million to $695 million. The lower end of both metrics come in ahead of estimates pegged at $701 million and of $683 million, respectively.
For the 2025 fiscal year, DocuSign ( NASDAQ:DOCU ) expects revenue of between $2.92 billion and $2.93 billion, with the low-point of that band surpassing the Street expectation of $2.91 billion.
DocuSign's CEO Allan Thygesen said the better-than-expected quarterly results were driven by growth from both enterprise and small business customers, further adding that the company had observed improving IT spend versus previous quarters. Thygesen also noted that the company’s addition to Microsoft’s ( NASDAQ:MSFT ) Azure marketplace had helped it connect with large customers.
Technical Analysis
The DocuSign ( NASDAQ:DOCU ) share price has oscillated roughly within a 20-point range over the past 17 months to form clearly identifiable areas of support and resistance. Although the 50-day moving average crossed back above the 200-day moving average in early January to generate a golden cross signal, the price has remained rangebound with a moderate Relative Strength index (RSI) of 60.
Amid follow-through buying after the company’s strong earnings report, keep an eye on the trading range’s top trendline around $64.50 as a potential resistance area. If a breakout occurs, monitor a prior countertrend high near $77 as the next possible level of chart resistance.
DocuSign ( NASDAQ:DOCU ) shares gained 11.1% to $59.50 in after-hours trading Thursday but slid a little bit to $56.26 on Friday's trading session.
Doculong
DOCUSIGN - Could Be Due For A Bounce, 10-15% Possible Soon?DOCU- May be a bit oversold considering it's still a viable company. And fundamentally they have out-competed everyone in this seemingly simple industry. They have good contracts with big companies and everyone uses DOCU. Maybe I am wrong but if nothing else we have a scalp opportunity with a gap above.This could take a week or so to play out but I think it will be sooner than later. NFA, DYOR
DOCU Dump or Pump from the bottom?There is a daily wolfe wave setup in DOCU that has not yet triggered a buy entry. The setup appeared after the earnings debacle and we believe alot of people lost tremendous amounts of money using DOCU as a covid play. The projected target is calculated by extending a linear line between pivot 1 and 4 and projecting the line. This is represented as the green perforated line, as shown in the chart. The projected target is approximately 300;however, note the wolfe wave apex is diverging instead of converging into an apex. The expected time frame for this trade idea unknown, however, using leaps 2024 OTM contracts is something to think about if you want to remove any short term uncertainty.
US Stock In Play: $DOCU (DocuSign Inc)$DOCU successfully broke beyond its 52-weeks high that was established in early September 2020, attaining a new all time high of $293.65 in its latest market session. The past four weeks of price soar in $DOCU (+22.96%) display a classical double bottom technical breakout from $235 since early June this year.
$DOCU shows that it has strong prospects ahead for the coming H2 and that it's not simply a beneficiary of the COVID-environment. It is one of the few SaaS stocks, that's guiding for solid profits at approximately 17% operating margins. With current price implied volatility remaining 40% below its the peak level in September 2020, $DOCU is poised for further upside with $300 as the next psychological price resistance level.
$DOCU provides cloud based software in the United States and internationally. The company provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements.
DOCU - 8.68% Potential Profit - Ascending TriangleApproach this with care. Medium confidence on the Resistance Line due to a lack of touch-points.
Strong level of support, confirmed multiple times over the past 5 months in an uptrend corridor. Ascending Triangle formed within, just broken out.
Place a Limit Entry to ensure triangle support confirmation and decrease risk.
- Historical Uptrend and All-time High
- Pandemic-friendly Stock
- RSI + Stoch well above 50
- MACD above Signal.
Suggested Entry $220.43
Suggested Stop Loss $214.69
Target price $239.17
Double Up On $DOCU | Buying Shares Docu Up $147% Since March Earnings Report
Back in April, we tried to play Docu with $105 calls but sadly didn't pay for the time. If we would've thrown 3 months of time, each contract would be $8,000 each at the least ($80 in the money).
Our Play (Rating 9/10)
-Doubling up on our portfolio, adding 10 shares
- Options Play: $18 7/10 Call @ $390 per contract
Do not trade this, not financial advice
DotcomJack