Dan Nathan on why DocuSign is Interesting and why he Expects to see M&A in the Space Soon

Bullish Studio

Dan comments on the 50% revenue growth in the two years of the pandemic, and discusses how this valuation may be a little more reasonable.   Dan thinks you're going to have some really good trading opportunities in companies like this.   Dan also expects to see some M&A in some of these companies that are one-trick ponies.

Transcript

00:00 Dan, what do you think of the results and the pops in the shares?

00:03 Yeah, well, like a docusign is very interesting to me.

00:07 Obviously, you know, 50% revenue growth in the two years during the pandemic, 2020 and 2021.

00:13 Massive deceleration.

00:14 This is a trend that we've been talking about for a very long time.

00:16 The stock at its lows just recently was down 85% from its all-time highs last summer.

00:22 Okay, just think about that here.

00:23 So maybe this valuation is a bit more reasonable, trading about four times next year's sales,

00:28 still about 10% short interest here.

00:31 You know, listen, you want to hear beaten raises.

00:33 Then companies like this are lapping some of those year-over-year compares,

00:37 and I think you're going to have some really good trading opportunities.

00:39 Additionally, some of these companies are not going to be standalones.

00:42 They kind of got bailed out during the pandemic

00:45 because there was tremendous need for their services,

00:48 but ultimately I expect to see some M&A in some of these companies that are kind of one-trick ponies here.

Category

Transcript

Recommended