Why are Nitro (NTO) shares falling?
NTO -9.52%: tough day for the e-signature software business after competitor DocuSign (DOCU US) missed forecasts and was smashed aftermarket. The US based DocuSign gave 4th quarter revenue guidance of $US 557-563m, around 2.5% below consensus, though the stock was hit ~30% in aftermarket trade. The market was hyping up for a beat to estimates, but the supercharged growth of the last few periods looks to be tapering off. Nitro also saw selling pressure after the retail component of their recent equity raise closed a bit underdone. 4.4m shares were placed with the underwriter after around 40% of eligible shareholders took up their entitlement. It’s likely this will have some overhang on the stock into early next week, however we continue to like it and may add to the position into further weakness. It’s far cheaper than DOCU US and is gearing up after recent acquisitions.
