Shares of San Francisco-based DocuSign, Inc. DOCU, a SaaS provider of digital signatures and approvals, tanked over 40% Friday following the release of its quarterly results.
What Happened: Undeterred by the steep sell-off, Cathie Wood's Ark Invest bulked up on DocuSign, using the weakness as a buying opportunity.
Wood's ARK Innovation ETF ARKK picked up 461,662 shares of the company, her ARK Next Generation Internet ETF ARKW purchased another 178,334 shares and the ARK Fintech Innovation ETF ARKF bought 106,968 shares.
The total number of DocuSign shares bought by Ark's actively-managed funds was 746,964, valued at about $31.2 million at Friday's closing price of $41.77 a share.
Related Link: DocuSign Plummets 40%: A Technical Breakdown
Why It's Important: Friday's plunge is attributable to a billings miss by the company and a slew of downgrades and price target revisions by sell-side analysts that followed.
The company's management talked about a shift in demand as pandemic tailwinds dissipated.
Ark, however, is optimistic. "We believe the transition from paper to digital agreements is enduring and expect growth to re-accelerate in the long-term as management refocuses go-to-market efforts," the fund said in a stock report.
DocuSign closed Friday's session down 42.22% at $135.09 and were seen slipping an incremental 0.77% in after-hours trading.
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