DocuSign’s Q3 earnings results showed a significant increase in revenue and billings, causing its shares to rise by around 30%. However, the analyst believes it is time to lock in gains and trim positions due to increased competition from Adobe.
The company faces challenges in maintaining its market share, particularly with Adobe’s Document Cloud growing at a faster pace. Additionally, DocuSign has not seen significant benefits from artificial intelligence (AI) tailwinds.
Given that DocuSign’s valuation has reached nearly 7x FY26 revenue, the analyst considers it prudent to take profits and exit the stock.
Source: https://seekingalpha.com/article/4742785-docusign-time-to-start-taking-profits-here-rating-downgrade