DocuSign reported 46% YOY in growth in revenue in Q3 2020. It has a large customer base of 822,000 and is touted as the worlds #1 eSignature solution. Considering the competitive signature market in 2020, this is significant.
The digital signature market is projected to grow from $2.8bn in 2020 to $14.1bn in 2026, according to a report by Research and Markets.
As society becomes increasingly cashless, a move accelerated by CV19, there is a case that all contracts and documents requiring signatures will no longer require paper and pen.
DocuSign has been a massive beneficiary of CV19, benefitting from the surge in home working.
DocuSign has rallied 270% since its March lows, from $76 to $245 today. It has puled back about 15% from its all tom highs in September. Alex Zukin, an analyst at RBC Capital, maintained a Buy rating and set a target of $275 for DocuSign’s share price.
DOCU has been forming a massive since May. After this large period of consolidation, DOCU may be poised for a break out the upside. An ideal, but more risky entry, would be in the range of $227 to $221, the 0.6 and 0.618 fibonacci pullback zone. A less risky entry may be on the break out of the triangle consolidation pattern. The stock has found support, and is currently guarding above its 100 moving average.