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0 pointskuwoze3y ago0 comments

was sensible.

now that a 5 year bond outperforms most tech companies they are beginning to rethink their headcounts and all that sales and marketing spending

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danielmarkbruce3y ago· 2 in thread

"Outperforms" = will outperform over the next 5 years? Did outperform over the past 5 years? What exactly?

The IRR on sales & marketing spend at Docusign is way above 4% (approx current yield on 5 year).

kuwozeOP3y ago

i will give you the benefit of the doubt in case you are not familiar with finance terminology.

a 5 year treasury bond right now has a yield of 4%. if you were to buy and hold to maturity, after 5 years you get 4% return. this is what is meant by "outperforms" in this context. If it was about the past, one wouled add -ed and give the start date.

now, docusign stock price is 62% down ytd (2022.10.01), and is only trading 7% over its ipo price. So I don't care what the IRR is, I predict a 4% increase from the current price in 5 years is highly unlikely and the downward move will deepen across the tech sector hence I will never buy this meme stock. I will check in 5 years to verify if my prediction is correct. you are more than welcome to waste your money on this, just maybe don't bet your house on it.

danielmarkbruce3y ago

"Outperformed" = past, "will outperform" = future, "outperforms" implies either present tense, or generally. Neither makes sense here.

Stock down 62% ytd = avoid ...isn't great logic. But, no need to check back in in 5 years, there is easy money here to be had - just write a bunch of DOCU call options, long dated. Invest all the proceeds in the 5 year bond.

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