DigitalOcean Holdings Inc. saw its stock price decrease by 5.04% as it crossed below the 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 1.84% and the S&P 500 down 1.82%.
Despite the stock decline, DigitalOcean reported impressive financial results, with total revenue reaching $659 million for the first three quarters of 2025, a 14.5% year-over-year increase driven by strong AI business growth. The company's net income surged to $233.6 million, a remarkable 252% increase year-over-year, attributed to effective cost management and accelerating revenue growth. Analysts remain optimistic, with 8 out of 15 assigning a buy rating, indicating confidence in the company's future performance.
The strong performance in AI revenue, which has doubled for five consecutive quarters, positions DigitalOcean favorably in the market, despite the current stock price decline. The attractive valuation, with a price-to-sales ratio of 6.4 below the historical average, suggests potential for recovery as market conditions improve.
Wall Street analysts forecast DOCN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOCN is 55.90 USD with a low forecast of 47.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast DOCN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOCN is 55.90 USD with a low forecast of 47.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Buy
4 Hold
0 Sell
Moderate Buy
Current: 60.240
Low
47.00
Averages
55.90
High
65.00
Current: 60.240
Low
47.00
Averages
55.90
High
65.00
BofA
Wamsi Mohan
Buy
maintain
$60 -> $72
2026-01-27
New
Reason
BofA
Wamsi Mohan
Price Target
$60 -> $72
AI Analysis
2026-01-27
New
maintain
Buy
Reason
BofA analyst Wamsi Mohan raised the firm's price target on DigitalOcean to $72 from $60 and keeps a Buy rating on the shares. The firm, which notes that shares are trading higher as agentic AI assistants, specifically Clawdbot, gain traction across developer communities, is raising its multiple to reflect the early innings of agentic AI adoption and use-cases from agentic AI broadening. DigitalOcean is well positioned to capitalize on early-stage AI agent deployments as developers typically prioritize an always-on server with predictable unit economics, the analyst tells investors.
Piper Sandler
James Fish
Neutral
maintain
$47 -> $50
2026-01-05
Reason
Piper Sandler
James Fish
Price Target
$47 -> $50
2026-01-05
maintain
Neutral
Reason
Piper Sandler analyst James Fish raised the firm's price target on DigitalOcean to $50 from $47 and keeps a Neutral rating on the shares. The firm is slightly adjusting its estimates following its cohort update, but with limited visibility, Piper sees little room for error at these levels as 2026 NNARR assumes DO will add more than what it will do in 2025 already. The firm is encouraged by the bigger deal momentum, mix shift, and mini-analyst day catalyst potential.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for DOCN
Unlock Now
Oppenheimer
Outperform
initiated
$60
2025-11-10
Reason
Oppenheimer
Price Target
$60
2025-11-10
initiated
Outperform
Reason
As previously reported, Oppenheimer initiated coverage of DigitalOcean with an Outperform rating and $60 price target. The firm views DigitalOcean as a turnaround story that has begun to show improving traction and momentum with existing and new customers. And Oppenheimer sees customers expanding their utilization of DigitalOcean's infrastructure-as-a-service and platform-as-service cloud offerings for their artificial intelligence inferencing workloads. This should help the company compete effectively with the "neo-cloud" vendors and drive over 20% topline growth for the next several years, the firm adds.
Oppenheimer
Oppenheimer
Outperform
initiated
$60
2025-11-10
Reason
Oppenheimer
Oppenheimer
Price Target
$60
2025-11-10
initiated
Outperform
Reason
Oppenheimer initiated coverage of DigitalOcean with an Outperform rating and $60 price target.
About DOCN
DigitalOcean Holdings, Inc. provides the simplest scalable cloud platform that democratizes cloud and AI for growing tech companies around the world. It provides a cloud computing platform, offering simple, scalable and approachable on-demand infrastructure and platform services for developers at growing technology companies. Its platform simplifies cloud computing, enabling its customers to rapidly accelerate innovation and productivity. The simplicity of its platform allows users to focus on building and scaling their business instead of on managing their infrastructure. It offers mission-critical solutions across Infrastructure-as-a-Service (IaaS), including its Droplet virtual machines, storage and networking offerings; Platform-as-a-Service and Software-as-a-Service, including its Managed Hosting, Managed Database, Managed Kubernetes and Marketplace offerings; and artificial intelligence and machine learning, including its GPU Droplets, Notebooks and GenAI Platform offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
