After a 43% daily drop on and over 55% drop from its 52 week high the market speculates
Is DocuSign Stock A Buyout Target? The smart contract company is under fire today on wall street as the stock is down by nearly half.
Now that it trades at a $25 billion net market value when taking cash out, the valuation might be attractive to a larger player?
Moreover, Salesforce enjoys a nearly 10x revenue to market cap with much less growth than DocuSign. In addition, a DocuSign would have a lot of cost synergies with a horizontal player in its space, such as a Microsoft or Salesforce.
But would management sell at these new low levels?
How much would an offer have to be to lure shareholders recently burned?
DocuSign is annualizing revenue at north of $2 billion with about a billion of cash in the bank. So could that be worth $30 to $40 billion to the right buyer?
Furthermore, could DocuSign be an attractive target to a larger technology firm that wants to get more into the B2B marketplace? DocuSign also has the benefit of increasing margins as a SAAS player.
Leading Artificial Intelligence and Financial Advisor – Rebellion Research
Is DocuSign Stock A Buyout Target?
