Skip to contentHome page Seeking Alpha - Power to InvestorsMay 03, 2026, 8:39 AM ETDocusign, Inc. (DOCU) StockSandpiper Investment Research1.54K FollowersCommentsDocusign appears optically cheap, but true economics are obscured by stock-based compensation consuming nearly 20% of revenue.After adjusting for SBC, DOCU's economic free cash flow is ~$378M, implying a 20x EV/FCF multiple versus the headline 8x.Competitive risk from Microsoft, Adobe, and Google threatens DOCU's growth, with dollar net retention stagnant at 102%.I rate DOCU a 'strong sell' due to limited upsell traction, flat sequential guidance, and insufficient margin of safety.Sorapop/iStock via Getty ImagesThe software space has been decimated, with several companies having fallen 50% or more from their highs. With the advent of AI and the sheer market capitalization lost in the software sector, I think it’s worth hunting for potentialThis article was written bySandpiper Investment Research1.54K FollowersI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their invested capital over long periods of time.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.