DocuSign Exploits “AI Magic Trick” to Trigger 14% Frenzy Despite Shares Down -72% From Pandemic High

Turns out, DocuSign isn’t dead yet. The pandemic poster child for “Oh sh*t, we need to sign things remotely” just reminded Wall Street that it still has some life left in it, posting an earnings beat that sent shares flying 14% after-hours. 

(Source: Giphy) 

In short, CEO Allan Thygesen, who jumped in to clean up the post-2021 disaster, went on CNBC to deliver the usual CEO fist pump: “We’ve really stabilized and I think started to turn the corner on the core business.” Translation: “We stopped the bleeding, and AI is our new excuse for growth.” 

Sigh… Yes, AI. It wasn’t the $776 million in revenue and the EPS that came in at $0.86, barely edging out the $0.85 estimates that stole the show here—it’s Docusigns AI. And apparently, it’s the only thing keeping the stock relevant these days. 

(Source: CNBC) 

Simply put, DocuSign’s Intelligent Agreement Management (IAM) platform is the new kid on the block, and it’s got analysts foaming at the friggin’ mouth. Basically, it’s an AI-powered contract optimizer that allegedly creates, manages, and analyzes agreements faster than a paralegal on Adderall. Thygesen called it a “treasure trove of data” and claimed it’s the fastest-growing new product in company history. 

Meaning, that’s literally all Wall Street needed to hear to pile drive their Friday strip club money into DocuSign. AI? Check. Data? Check. Growth? Sure, why not? Investors threw money at the stock like it was an OpenAI press release. But, as if AI wasn’t enough, DocuSign is also getting in bed with Microsoft and Google (read: Thygesen’s former people), to ensure its software stays baked into their ecosystems. Thygesen insists these partnerships are a win, not a desperate attempt to stay relevant, stating “They’re not looking to become agreement management specialists.” Agreement management specialists? Sounds legit. 

(Source: Fast Company) 

To be fair, this move with Microsoft is smart. Especially considering Microsoft is integrating the company's buffett of “agreement management” tools into its office suite (you know, because printing, signing, and scanning documents is so 2005). Google, meanwhile, is also getting in on the action, though the details are vague—probably just enough to keep investors excited.

So yeah, it was a party on Friday, but let’s not get stupid here. Yes, the stock is up 14% on the earnings beat, but let’s not forget the stock is still down -5% YTD, and it still has a long way to go from its pandemic highs ($310 a share, now chilling under $60). Meaning, the AI hype will only carry it so far if actual revenue growth doesn’t show up.

(Source: Giphy) 

In the end though, DocuSign dodged another bullet with this earnings call, but if IAM doesn’t deliver real, sustained growth, this could just be another post-pandemic dead cat bounce. For now? Investors are happy, DocuSign gets to ride off into the sunset, and Google is literally one-click away from absolutely destroying Docusigns entire business model. 

In the meantime, keep your eyes on DocuSign and these partnerships, and place your bets accordingly. As always, stay safe and stay frosty, friends! Until next time… 

P.S. You know that feeling when an insider sells $2.5 million shares of a chip stock that’s “supposed” to be the next Nvidia? If you don’t, then you need to join Stocks.News premium asap to get the first-hand look at these massive insider transactions before the rest of the retail world catches on. Spoiler: The stock has soared 400% over the last 12 months—so why in the hell is the Chief Technology Officer of this high-flying stock dumping his bags now? 

Stocks.News holds positions in Google and Microsoft as mentioned in the article.