Analyst Bullish on Docusign (DOCU) Amid ‘Realistic’ Double-Digit Growth Path
2025-04-03T16:43:23.000Z
We recently published a list of Top 10 Stocks to Watch as AI Trade Dynamics Change. In this article, we are going to take a look at where Docusign Inc (NASDAQ:DOCU) stands against other top stocks to watch as AI trade dynamics change.
Aswath Damodaran from NYU Stern School of Business said in a recent program on CNBC that AI “buzzwords” are not boosting the market anymore as investors grow more concerned about capital spending.
“I’ve said about data centers we’ve gotten way ahead of the game. I mean, the AI product and service business, which ultimately is what has to pay for all of this, has not taken off in any substantial way. I’m hard-pressed to think about any company making significant money from the AI product and service business.”
Damodaran said that the “sobering” of the AI trade started in September last year and the DeepSeek breakthrough in China also had an impact on the industry.
“It’s part of, I think, what you see almost every buzzword in history in the last four decades. I call these the ‘bar mitzvah moment,’ where people wake up and say, ‘Okay, there’s a lot of promise here, but show me something that I can hang my hat on.'”
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Analyst Bullish on Docusign (DOCU) Amid ‘Realistic’ Double-Digit Growth Path
A software engineer in front of a computer screen, typing code to build the company's electronic signature software.
Docusign Inc (NASDAQ:DOCU)
Number of Hedge Fund Investors: 42
Wall Street is focusing on Docusign Inc (NASDAQ:DOCU) after the company’s latest results.
“While bears push back on the Q4 outperformance given half of the upside was driven by early renewals, bulls point to improving gross retention and higher-than-expected IAM billings as well as the above-consensus billings guide for FY26,” said Morgan Stanley analysts, led by Josh Baer, in a recent investor note. “With FY26 billings guidance already starting at 8% cc, the path to double-digit growth has become more realistic.”
The company’s Intelligent Agreement Management, or IAM, is expected to see a double-digit percentage share of total subscription recurring revenue in fiscal 2026.