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
now that a 5 year bond outperforms most tech companies they are beginning to rethink their headcounts and all that sales and marketing spending
The IRR on sales & marketing spend at Docusign is way above 4% (approx current yield on 5 year).
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.
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.
For those worried about "unlimited loss", just buy a wildly out of the money call, well above the price they sell them at.
Easy money - assuming it is in fact "highly unlikely" that the stock will outperform the 5 year bond.