DocuSign Stock Plummets Amid Growth Concerns and Strategic Doubts

DocuSign shares (DOCU) plunged nearly 19% on Friday, closing at $75.28, after disappointing first-quarter results shattered its recent recovery momentum. The company cited lower-than-expected billings growth and slashed full-year guidance, attributing the shortfall to temporary sales compensation changes that reduced early renewals.

Wall Street analysts expressed skepticism. J.P. Morgan's Mark Murphy noted, 'We may have underestimated the impact of DocuSign’s go-to-market changes,' maintaining a Neutral rating but cutting his price target to $77. UBS’s Karl Keirstead questioned whether broader economic uncertainty or sales execution issues might be at play, reinforcing his Neutral stance.

The abrupt decline highlights mounting scrutiny of DocuSign’s growth strategy as macroeconomic headwinds pressure software valuations. Investors now await clearer signs of operational stability before reconsidering the stock.