What happened
Shares of e-signature and cloud-based document company DocuSign (NASDAQ: DOCU) jumped on Friday, finishing the trading day up 10.9%. The stock's gain followed some big declines earlier that week amid a broader market sell-off that hit high-growth tech stocks particularly hard.
The stock's gain on Friday was likely fueled by a combination of factors, including a rebound in the broader market, bullish analyst commentary, and a successful initial public offering by a software peer.
Image source: DocuSign.
So what
Tech stocks moved higher on Friday, evidenced by the tech-heavy Nasdaq Composite 's 2.3% gain by the end of the trading day. High-growth stocks like Square , Netflix , and DocuSign especially had a good day.
Also helping investors' optimism toward DocuSign on Friday was a list of software technology stocks (via TheFly ), which J.P. Morgan analyst Sterling Auty believed were oversold. DocuSign was one of these stocks.
Finally, a successful IPO from software company Anaplan might have also contributed to optimism toward software companies overall, helping DocuSign stock in turn. Anaplan shares surged 43% on their Friday debut.
Now what
DocuSign's business is seeing notable momentum. After reporting solid second-quarter results last month, including 33% year-over-year revenue growth, DocuSign raised its revenue outlook for its full-year fiscal 2019. The company said it expects full-year revenue between $683 million and $688 million, up significantly from a previous forecast for revenue between $652 million and $658 million.
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Daniel Sparks owns shares of Square. The Motley Fool owns shares of and recommends Netflix and Square. The Motley Fool has the following options: short January 2019 $80 calls on Square. The Motley Fool recommends DocuSign. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
