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DOCU Stock Alert: What to know about DocuSign’s new CEO


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cloud software company DocuSign (NASDAQ:DOCUMENT), specializing in electronic signature solutions, announced on September 22 that its board of directors had hired Allan Thygesen as CEO. Thygesen originated from Google under parent company Alphabet (NASDAQ:GOOGNASDAQ:GOOGL), serving for several years as the head of various marketing initiatives. DOCU stock has struggled throughout the past week amid troubling economic circumstances, symbolizing the challenges awaiting the new chief executive.

Thygesen will take over from Mary Agnes “Maggie” Wilderotter. By MarketWatch, Wilderotter will remain Chairman of the DocuSign Board of Directors. Previously, Thygesen served as president of Google’s Americas and Global Partners unit, leading the company’s advertising activities in North and South America. Prior to this role, Thygesen served as President of Google Marketing Solutions, which oversaw the global small and medium-sized advertising market.

The new CEO has also held positions within The Carlyle Group (NASDAQ:CG) and Communications Snapshot.

“In this time of accelerated digital transformation in businesses large and small, there is no better person to lead DocuSign than Allan Thygesen,” Wilderotter said, according to a company press release. “He is a customer-focused innovator with deep experience in e-commerce, business digitization, and leading high-growth organizations. The Board believes Allan is the right leader to help DocuSign to continue to seize the huge market opportunity before us.

DOCU Stock faces a tough road

DocuSign’s new CEO expressed optimism about the company’s prospects. “DocuSign has long provided the most trusted fully integrated platform for digital deals, and I am honored to lead the company into its next big chapter,” said Thygesen. Still, DOCU stock is looking at tough circumstances.

Primarily, the gradual waning of the coronavirus pandemic dampens the cynical hostage public narrative that previously underpinned DocuSign. During the initial outbreak of Covid-19, contactless services commanded a large fundamental premium. DOCU stock has grown significantly in 2020 as the underlying platform allowed people to do business without too much face-to-face interaction.

Now that Covid restrictions have mostly disappeared, the need for contactless arrangements has diminished considerably. However, the double whammy is that even with greater social mobility, DocuSign’s total addressable market is shrinking.

As NPR pointed out, the Federal Reserve’s pivot to hawkish monetary policy – ​​which translates into higher interest rates – recently sparked a massive housing sell-off. As a result, DocuSign could see its sales volume decline as large transactions decline across the country.

To be fair, Thygesen has an impressive professional pedigree. Additionally, the insights the executive brings to the table in driving various marketing initiatives should prove useful to DocuSign. However, the main challenge is to build momentum in a deflationary environment. Year-to-date, DOCU stock is down about 67%.

As of the date of publication, Josh Enomoto had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto helped negotiate major contracts with Fortune Global 500 companies. Over the past several years, he has provided critical and unique insights to the investment markets, as well as various other industries including law, construction management and healthcare.

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