DOCU stock alert: What you need to know about DocuSign’s new CEO

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A cloud software company DocuSign (NASDAQ:DOCU), which specializes in e-signature solutions, announced on September 22 that its board of directors hired Allan Thygesen as CEO. Thygesen comes from Google under the parent company Alphabet (NASDAQ:GOOGNASDAQ:GOOGLE), who has been leading various marketing initiatives for several years. DOCU shares have struggled over the past week amid difficult economic conditions, symbolizing the challenges ahead for the new CEO.

Thygesen will take the helm from Mary Agnes “Maggie” Wilderotter. per MarketWatch, Wilderotter will remain chairman of DocuSign’s board of directors. Prior to that, Thygesen was president of Google’s Americas and Global Partners unit, where he led the company’s advertising business in North and South America. Prior to this position, Thygesen was President of Marketing Solutions at Google, overseeing the global mid-sized and small advertiser business.

The future CEO also held roles at The The Carlyle Group (NASDAQ:CG) and Wink Communications.

“At this time of accelerated digital transformation in businesses large and small, there is no better person to lead DocuSign than Allan Thygesen,” said Wilderotter, according to the company press release. “He is a customer-focused innovator with extensive experience in e-commerce, business digitalization and leading high-growth organizations. The Board believes Allan is the right leader to help DocuSign continue to capitalize on the tremendous market opportunity that lies ahead.”

DOCU stock has a tough road ahead of it

DocuSign’s new CEO expressed optimism about the company’s prospects. “DocuSign has a long history of providing the most trusted, fully integrated digital contract platform, and I am honored to lead the company in its next great chapter,” said Thygesen. Still, DOCU stock is staring down a tough patch.

In particular, the gradual fading of the coronavirus pandemic is tempering the cynical narrative of the hostage audience that previously carried DocuSign. During the first onset of Covid-19, contactless services commanded a significant fundamental premium. DOCU stock rose dramatically in 2020 as the underlying platform allowed people to do business without much personal interaction.

Now that the restrictions due to Covid are mostly gone, the need for contactless arrangements has significantly decreased. However, the dual problem is that even with increased social mobility, DocuSign’s entire addressable market is suffering a decline.

Like NPR It is pointed out that the Federal Reserve’s turn to hawkish monetary policy – ​​meaning higher interest rates – triggered it sale of apartments recently. Therefore, DocuSign’s sales volume may decrease as large transactions across the country decrease.

To be fair, Thygesen has an impressive professional pedigree. In addition, DocuSign should find the knowledge the CEO brings to the table useful in driving various marketing initiatives. However, the main challenge is to generate momentum in a deflationary environment. Year-to-date, DOCU stock is down about 67%.

On the day of publication Josh Enomoto did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are the subject of InvestorPlace.com Publishing Guidelines.

Former Senior Business Analyst for Sony Electronics, Josh Enomoto has helped close major contracts with Fortune Global 500 companies. Over the past few years, he has provided unique, critical insights for the investment markets as well as a variety of other industries including law, construction management and health care.

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