Shares of DocuSign (NASDAQ:DOCU) were sliding on Monday as some investors may view state reopenings as a slightly negative thing for growing tech companies. DocuSign fell by as much as 6.2%, and as of noon EDT today, the stock was down 4.3%.
Investors have been generally very optimistic about tech stocks over the past few months. As state economies shut down because of the coronavirus, investors looked to tech stocks that could not only ride out the shutdowns but also thrive during them.
With DocuSign allowing companies to digitally prepare and sign online documents, the company's services were made for social distancing. Investors flocked to DocuSign's stock and have pushed its share price up 128% over the past six months.
But as states and local governments begin to lift restrictions around the country, some investors may be selling off some of their DocuSign shares, believing that the worst of social distancing is over.
The S&P 500 was actually rising today, up by about 1%, as DocuSign fell. The market has been especially unpredictable over the past few months, and today's drop from DocuSign reflects that. Though many states have begun their reopening plans, some are stopping them, or at least slowing them down due to rising coronavirus cases.
With no major treatment or vaccine for COVID-19 yet, social distancing will likely continue to play an important part in Americans' lives through at least 2020. All of which means that investors are likely to see DocuSign's services (and potentially its share price) grow during this time.