5 Tech Stocks to Avoid Until 2024

In this article, we discuss 5 tech stocks to avoid until 2024. If you want to see more stocks in this selection, check out “Bear Market Rally”: 10 Tech Stocks to Avoid Until 2024. 

5. DocuSign, Inc. (NASDAQ:DOCU)

Number of Hedge Fund Holders: 45

DocuSign, Inc. (NASDAQ:DOCU) is a California-based company that provides electronic signature software in the United States and internationally. The stock has shed over 55% of its value year to date as of August 9. Piper Sandler analyst Rob Owens on July 21 downgraded DocuSign, Inc. (NASDAQ:DOCU) to Underweight from Neutral with a price target of $54, down from $65. The company’s risk profile remains challenging amid the CEO transition, ongoing execution challenges, quick employee turnover, and the “deteriorating” macro environment, said the analyst. He sees a challenging backdrop for possible revenue reacceleration in the short-term and thinks a core upside driver would be a potential takeout. The analyst told investors that they “shouldn’t hold out for takeout potential alone”. 

According to Insider Monkey’s data, 45 hedge funds were bullish on DocuSign, Inc. (NASDAQ:DOCU) at the end of Q1 2022, down from 49 funds in the last quarter. Ken Fisher’s Fisher Asset Management featured as the biggest stakeholder of the company, with 4.6 million shares worth about $497 million. 

Here is what Cooper Investors Rowan Street Capital has to say about DocuSign, Inc. (NASDAQ:DOCU) in its Q1 2022 investor letter:

“The beauty of the public markets is that if you can be patient, there is a good chance the volatility of the marketplace will give you the chance to own companies on your watch list. The stock prices of our 3 new positions (please refer to charts below) have fluctuated from 100-350% over the past 12 months (when comparing 52-week high by 52-week low). Certainly, the underlying value of a business doesn’t fluctuate that much on an annual basis, so the public markets are a fantastic arena to buy businesses if you can sit still without growing tired of sitting still.

We have been following Docusign (NASDAQ:DOCU) since its IPO in 2018. Its stratospheric valuations over the past few years have kept us admiring this company from the sidelines. We took advantage of the recent drastic drop in stock price to build a core position for the fund.”