Why DocuSign Rose Today
Shares of e-signature leader DocuSign (NASDAQ: DOCU) were rising today, up as much as 6%, before reverting to a 1.6% gain at 3:47 p.m. EDT, as the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell into deep negative territory. Unfortunately, DocuSign's outperformance was not for the best of reasons, as the company announced its second round of layoffs within five months.
That could suggest business and revenue may still be slower than expected; however, it could also very well be the positive signal the market is taking it to be.
That's because the initial round of layoffs last September came just after its new CEO, Allan Thygesen, was officially hired. Therefore, this latest round of cuts, which is occurring all across the tech space, could be seen as a continuation of Thygesen's scrutiny of DocuSign's bloated cost structure and not merely a reaction to soft revenue.
Source Fool.com
