DocuSign (DOCU) Shares Down Amid Weak Momentum in Software Industry
DocuSign, Inc. (NASDAQ:DOCU) is one of the most undervalued AI stocks to buy now.
As of February 26, 2026, software stocks remain downbeat. The pressure weighs on DocuSign, Inc. (NASDAQ:DOCU)’s share price, sending it down over 33% YTD and nearly 50% over the past year.
Following a difficult 12-month period, DocuSign, Inc. (NASDAQ:DOCU) hit a new 52-week low of $43.63 on February 13, 2026, and closed at $41.75 on February 23, 2026.
Ahead of fourth-quarter earnings, analysts remain concerned about how software names, such as DocuSign, Inc. (NASDAQ:DOCU), can mitigate AI-related disruptions. Lingering uncertainty drove Jefferies’ downgrade of the stock to ‘Hold’ on February 23, 2026, with the firm saying application software players have suffered the most. As for DocuSign, Inc. (NASDAQ:DOCU), analysts at Jefferies see bleak chances of the company’s recovery to double-digit growth in the near future.
Jefferies sharply cut DocuSign, Inc. (NASDAQ:DOCU)’s price target from $105 to $45.
Meanwhile, last week, BTIG reduced its price target on DocuSign, Inc. (NASDAQ:DOCU) from $88 to $70, as of February 18, 2026, while keeping its ‘Buy’ rating.
DocuSign, Inc. (NASDAQ:DOCU) provides cloud-based e-signature and agreement automation solutions. With its business model, the company enables secure document signing, identity authentication, workflow automation, and digital transaction management for businesses and individual consumers.
While we acknowledge the potential of DOCU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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