Today is Friday, December 3, 2021.
DocuSign's Pandemic Boom Is Over
Shares of DocuSign (Nasdaq: DOCU) fell 29.7% in after-hours trading on Thursday after the technology company posted disappointing future guidance.
Financials: Docusign’s third-quarter earnings reached 58 cents per share and revenue hit $545 million; both were better than expected.
Bad Outlook: The problem for DocuSign was its fourth-quarter guidance. The company says its revenue will be between $557 million and $563 million. Analysts were looking for DocuSign to exceed $570 million.
Quote: “After six quarters of accelerated growth, we saw customers return to more normalized buying patterns, resulting in 28% year-over-year billings growth.” - Dan Springer, CEO of DocuSign.
Background: DocuSign was one of the stay-at-home darlings that thrived during the pandemic in 2020. The stock was up 194% last year. If you include the massive dip Thursday afternoon, DocuSign’s stock is negative for 2021.
Final Thoughts: Is Thursday’s dip an opportunity to buy DocuSign’s stock? It depends on how you feel about the valuation of the company.
Notable Earnings Today: Hibbett Sports (Nasdaq: HIBB), Big Lots (NYSE: BIG), Dole (NYSE: DOLE), Genesco (NYSE: GCO).
Notable IPOs Today: Creative Medical Technology Holdings, Inc. Common Stock (Nasdaq: CELZ), Fat Projects Acquisition Corp Class A Ordinary Share (Nasdaq: FATP), Avalon Acquisition Inc. Class A Common Stock (Nasdaq: AVAC), Bullpen Parlay Acquisition Company Unit (Nasdaq: BPACU), Crypto 1 Acquisition Corp Unit (Nasdaq: DAOOU), BioPlus Acquisition Corp. Unit (Nasdaq: BIOSU).
Notable Equity Crowdfunding Campaigns Ending Today: CTXMarket (TruCrowd), GrownbyGreen (MainVest), Diem Cannabis (MainVest), Red’s House (MainVest), UNEEK Botanicals (MainVest), Dulceria (MainVest), HighRes Labs (Fundanna), Sugarholic Desserts (MainVest), Fazzio’s Pasta Company (MainVest).
Notable Economic Events Today: Nonfarm payrolls (8:30 a.m. ET), Unemployment Rate (8:30 a.m. ET), Markit Composite PMI (9:45 a.m ET), Factory orders (10:00 a.m. ET), ISM non-manufacturing PMI (10:00 a.m. ET).
Stay-at-Home Stocks Are Back, Thanks to Omicron
The threat of the new Omicron variant of the coronavirus rattled the stock market and it could be awful for most companies, except for the stay-at-home stocks.
Background: Many stay-at-home stocks had a strong 2020 when the pandemic started. As the pandemic subsided, these stay-at-home stocks tumbled in 2021. Now, with the Omicron variant, potential new lockdowns could be good for some stay-at-home stocks.
Examples: Some stay-at-home stocks include Zoom Technologies (Nasdaq: ZM), Peloton (Nasdaq: PTON), and Teledoc (NYSE: TDOC).
Other Tech Stocks: Don’t forget other big-name tech stocks that could perform well during a lockdown: including Amazon (Nasdaq: AMZN) and Salesforce (NYSE: CRM)
Final Thoughts: Is it too late to buy the dip for stay-at-home stocks?
VanEck Proposes Digital Mining ETF
Investment manager VanEck submitted paperwork this week to the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) on cryptocurrency mining businesses.
Details: The ETF will invest at least 80% of its assets in the securities of digital asset mining companies, according to the paperwork filed to the SEC.
Definition: An ETF allows investors to get exposure to crypto mining companies without having to own the underlying asset. For some investors, this is less risky, but others prefer to own the real asset.
Background: VanEck’s Bitcoin Futures ETF began trading a few weeks ago and was well-received by investors as an alternative for crypto investing.
Final Thoughts: Crypto mining is a hot business, and getting exposure to it in some way could boost an investor’s portfolio.
Trends to Watch
Leaving: Didi Global Plans to Delist From New York Stock Exchange (The Wall Street Journal)
Don’t Grab It: Grab plunges 21% in biggest Wall Street debut by a Southeast Asian company (CNN)
Not Happening: SEC Rejects WisdomTree’s Spot Bitcoin ETF Application (CoinDesk)
Beautiful: Ulta Beauty soars as re-opening drives massive earnings beat (Seeking Alpha)
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