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Forget Naysayers, Cathie Wood’s ARK Invest Bulks Up On DocuSign After Friday’s Bloodbath

Shares of San Francisco-based DocuSign, Inc. (NASDAQ:DOCU), a SaaS provider of digital signatures and approvals, tanked over 40% Friday following the release of its quarterly results.

What Happened: Undeterred by the steep sell-off, Cathie Wood’s Ark Invest bulked up on DocuSign, using the weakness as a buying opportunity.

Wood’s ARK Innovation ETF (NYSE:ARKK) picked up 461,662 shares of the company, her ARK Next Generation Internet ETF (NYSE:ARKW) purchased another 178,334 shares and the ARK Fintech Innovation ETF (NYSE:ARKF) bought 106,968 shares.

The total number of DocuSign shares bought by Ark’s actively-managed funds was 746,964, valued at about $31.2 million at Friday’s closing price of $41.77 a share.

Related Link: DocuSign Plummets 40%: A Technical Breakdown

Why It’s Important: Friday’s plunge is attributable to a billings miss by the company and a slew of downgrades and price target revisions by sell-side analysts that followed.

The company’s management talked about a shift in demand as pandemic tailwinds dissipated.

Ark, however, is optimistic. “We believe the transition from paper to digital agreements is enduring and expect growth to re-accelerate in the long-term as management refocuses go-to-market efforts,” the fund said in a stock report.

DocuSign closed Friday’s session down 42.22% at $135.09 and were seen slipping an incremental 0.77% in after-hours trading.

Related Link: Is It Time To Buy DocuSign Stock Following Q3 Results? Stephanie Link Weighs In

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