Billionaires Bet on Beaten-Down Tech Stocks: 2 Growth Stocks Down Over 70% to Watch

Billionaires Stanley Druckenmiller and Daniel Loeb are buying shares of DocuSign, a beaten-down growth stock trading 76% below its all-time high. The e-signature company is generating healthy profits and expanding its offering with AI-powered products, which management expects to drive higher revenue growth. The stock is more reasonably valued, trading at 17 times trailing free cash flow.

Billionaires Stanley Druckenmiller and Daniel Loeb have recently increased their investments in DocuSign Inc. (NASDAQ:DOCU), a beaten-down growth stock trading 76% below its all-time high. This move comes as the e-signature company continues to generate healthy profits and expand its offerings with AI-powered products, which management expects to drive higher revenue growth. The stock is currently trading at 17 times trailing free cash flow, indicating a more reasonably valued position.

According to the latest SEC filings, Oak Harvest Investment Services increased its holdings in DocuSign by 28.3% in the first quarter, owning 24,076 shares worth $1,960,000 at the end of the period [1]. Additionally, several other hedge funds, including Hemington Wealth Management and Golden State Wealth Management, significantly boosted their investments in the company, with Hemington increasing its position by 318.1% and Golden State by 519.4% [1].

DocuSign's Board of Directors initiated a $1 billion stock buyback plan on June 5th, signaling confidence in the company's stock value [1]. The buyback plan authorizes the company to repurchase up to 6.6% of its stock through open market purchases, a move typically seen as a sign of undervaluation.

Institutional investors also showed significant interest in DocuSign, with Wellington Management Group increasing its holdings by 372.5% in the first quarter, now accounting for over 77.64% of the company's stock ownership [2]. Allstate Corp also grew its stake in DocuSign by 71.7% during the same period, owning 10,136 shares worth $825,000 at the end of the quarter [2].

The stock's recent performance has been mixed, with a 50-day simple moving average of $75.47 and a 200-day simple moving average of $80.27. However, the company's earnings results for the quarter ending June 5th were positive, with the company reporting $0.90 earnings per share, topping analysts' consensus estimates by $0.09 [1]. The company's revenue was up 7.6% on a year-over-year basis, indicating strong growth in its core business.

Several research firms have recently weighed in on DocuSign, with Wells Fargo & Company raising its rating to "equal weight" and lifting its price target to $80.00 [1]. Wedbush, Morgan Stanley, and Needham & Company have also provided updated ratings and price targets, with the overall consensus rating currently at "Hold" and an average target price of $89.77 [1].

Despite the recent increase in stock prices, the stock remains a beaten-down growth stock, trading at a significant discount to its all-time high. However, the strong fundamentals, expansion into AI-powered products, and the confidence shown by institutional investors and billionaires such as Druckenmiller and Loeb suggest that DocuSign could be a compelling investment opportunity for those seeking growth in the technology sector.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-oak-harvest-investment-services-raises-stock-holdings-in-docusign-inc-docu-2025-08-24/
[2] https://www.marketbeat.com/instant-alerts/filing-allstate-corp-grows-stake-in-docusign-inc-docu-2025-08-25/