Shares of e-signature and cloud-based document company DocuSign (NASDAQ:DOCU) jumped on Friday, finishing the trading day up 10.9%. The stock's gain followed some big declines earlier that week amid a broader market sell-off that hit high-growth tech stocks particularly hard.
The stock's gain on Friday was likely fueled by a combination of factors, including a rebound in the broader market, bullish analyst commentary, and a successful initial public offering by a software peer.
Tech stocks moved higher on Friday, evidenced by the tech-heavy Nasdaq Composite's 2.3% gain by the end of the trading day. High-growth stocks like Square, Netflix, and DocuSign especially had a good day.
Also helping investors' optimism toward DocuSign on Friday was a list of software technology stocks (via TheFly), which J.P. Morgan analyst Sterling Auty believed were oversold. DocuSign was one of these stocks.
Finally, a successful IPO from software company Anaplan might have also contributed to optimism toward software companies overall, helping DocuSign stock in turn. Anaplan shares surged 43% on their Friday debut.
DocuSign's business is seeing notable momentum. After reporting solid second-quarter results last month, including 33% year-over-year revenue growth, DocuSign raised its revenue outlook for its full-year fiscal 2019. The company said it expects full-year revenue between $683 million and $688 million, up significantly from a previous forecast for revenue between $652 million and $658 million.
Daniel Sparks owns shares of Square. The Motley Fool owns shares of and recommends Netflix and Square. The Motley Fool has the following options: short January 2019 $80 calls on Square. The Motley Fool recommends DocuSign. The Motley Fool has a disclosure policy.