DocuSign’s Stock Collapse Sets Low Bar for Earnings

  • The stock is among the biggest Nasdaq 100 decliners of 2022
  • Netflix, Zoom, and Peloton have seen pandemic rallies reverse
The Docusign Inc. logo on a smartphone arranged in Dobbs Ferry, New York, U.S., on Thursday, April 1, 2021. DocuSign Inc.'s app, which lets you sign contracts and other documents digitally, has seen consistently high usage lately. The app has become a popular way to close real-estate transactions and is likely getting an extra boost from the housing boom.Photographer: Tiffany Hagler-Geard/Bloomberg
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Expectations for DocuSign Inc.’s earnings are so low after a series of blowups at the one-time pandemic winner that some investors are wondering if it can get any worse.

Shares of the company, which provides electronic-signature services used in real estate and other businesses, have plunged 65% this year, the second-worst performance in the Nasdaq 100 Index. As with other companies that surged in the Covid-19 era -- including Netflix Inc., Zoom Video Communications Inc., and Peloton Interactive Inc. -- investors have scaled back their estimation of its growth prospects in a reopened economy.