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DOCN Overview

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Intellectia

Loading chart...

High
62.120
Open
57.620
VWAP
60.55
Vol
4.29M
Mkt Cap
5.70B
Low
57.520
Amount
259.78M
EV/EBITDA(TTM)
21.95
Total Shares
92.00M
EV
6.46B
EV/OCF(TTM)
20.88
P/S(TTM)
6.71
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.
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Events Timeline

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News

NASDAQ.COM
8.5
03-01NASDAQ.COM
Herald Investment Management Acquires DigitalOcean Shares
  • New Investment Position: Herald Investment Management Ltd. disclosed in an SEC filing dated February 13, 2026, that it initiated a new position by acquiring 202,000 shares of DigitalOcean Holdings, with an estimated transaction value of $9.71 million, indicating confidence in the company's future prospects.
  • Asset Allocation Insight: Following this acquisition, DigitalOcean Holdings accounts for 1.27% of Herald's reportable 13F assets under management, which, while not placing it among the top five holdings, still underscores its significance within the investment portfolio.
  • Strong Market Performance: As of February 28, 2026, DigitalOcean's stock price stood at $56.06, reflecting a 31.26% increase over the past year, outperforming the S&P 500 by 13.9 percentage points, highlighting its competitive position in the cloud computing sector.
  • Future Growth Potential: DigitalOcean focuses on providing affordable cloud and AI services to small and medium-sized businesses, and despite facing short-term volatility, its long-term investment value remains promising, particularly as AI continues to evolve and expand.
Fool
8.5
03-01Fool
Herald Investment Management Acquires DigitalOcean Shares
  • New Investment Insight: Herald Investment Management Ltd. filed with the SEC on February 13, 2026, indicating a new position of 202,000 shares in DigitalOcean Holdings (DOCN), with an estimated transaction value of $9.71 million, reflecting optimism towards the cloud computing market.
  • Asset Allocation Analysis: This investment accounts for 1.27% of Herald's reportable U.S. equity assets under management, showcasing a strategic positioning in smaller cloud service providers, particularly as AI technology becomes increasingly vital.
  • Market Performance Highlights: As of February 28, 2026, DigitalOcean's stock price stood at $56.06, marking a 31.26% increase over the past year, outperforming the S&P 500 by 13.9 percentage points, indicating strong growth potential in a competitive market.
  • Business Model Advantages: DigitalOcean focuses on providing affordable cloud and AI services to small and medium-sized businesses, and despite facing short-term volatility risks, its self-service business model and high gross margin (59.86%) position it as a valuable long-term investment.
NASDAQ.COM
9.5
02-28NASDAQ.COM
DigitalOcean's AI Business Growth Accelerates
  • Significant Revenue Growth: DigitalOcean's revenue increased by 15% in 2025 to $901 million, with expectations of 21% growth in 2026 and 30% in 2027, indicating strong growth potential driven by its AI business.
  • Surge in AI Customer Revenue: In Q4, DigitalOcean's annual run-rate revenue (ARR) from AI customers soared by 150% year-over-year to $120 million, significantly outpacing the overall ARR growth of 18% to $970 million, highlighting robust demand for its AI solutions.
  • Full-Stack Platform Advantage: The full-stack AI platform offered by DigitalOcean, which integrates both hardware and software, propelled a remarkable 254% increase in ARR from AI inference services, enhancing revenue streams and laying a foundation for future profitability.
  • Substantial Stock Potential: Although DigitalOcean's stock jumped nearly 6% post-earnings report, it currently trades below $60, with analysts projecting a rise to $109 by 2028, suggesting a potential upside of about 95%, making it an attractive investment opportunity.
Fool
9.5
02-28Fool
DigitalOcean Leverages AI for Rapid Growth
  • Significant Revenue Growth: DigitalOcean's revenue reached $901 million in 2025, reflecting a 15% year-over-year increase, with management projecting a 21% growth in 2026 and 30% in 2027, indicating strong market demand and business expansion potential.
  • AI Customer Contribution: In the fourth quarter, DigitalOcean's annual run-rate revenue (ARR) from AI-specific customers surged by 150% to $120 million, significantly outpacing the overall ARR growth of 18% to $970 million, showcasing its competitive edge in the AI sector.
  • Full-Stack Platform Advantage: The full-stack AI platform offered by DigitalOcean not only allows customers to rent computing capacity but also aids them in building and scaling applications, with AI inference services' ARR skyrocketing by 254%, which will further drive revenue growth and create a stable recurring revenue stream.
  • Stock Investment Potential: Although the stock jumped nearly 6% post-earnings report, it currently trades below $60, with analysts predicting a rise to $109 by 2028, suggesting a potential upside of about 95%, making investing in DigitalOcean a smart choice right now.
Fool
8.5
02-28Fool
Glenview Capital Management Acquires Stake in DigitalOcean Holdings
  • New Investment Position: Glenview Capital Management initiated a new position in DigitalOcean Holdings during Q4 2025, acquiring 2,004,299 shares valued at approximately $96.45 million, indicating confidence in the cloud computing market.
  • Significant Position Value: As of December 31, 2025, Glenview's position in DigitalOcean was valued at $96.45 million, representing 1.96% of its 13F reportable assets, making it the fund's 11th largest holding and reflecting a strong commitment to the company.
  • Strong Performance Growth: DigitalOcean reported an 18% annual revenue growth, with annual recurring revenue (ARR) from $1 million customers surging by 123%, highlighting robust performance and demand in the cloud computing sector.
  • Future Growth Potential: Although the company is adding 31 megawatts of new data center capacity, which may temporarily impact profitability, management expects sales to grow by 25% in 2026, indicating strong long-term growth potential.
NASDAQ.COM
8.5
02-28NASDAQ.COM
Glenview Acquires Significant Stake in DigitalOcean Holdings
  • New Stake Acquisition: Glenview Capital Management initiated a new position in DigitalOcean Holdings by purchasing 2,004,299 shares valued at $96.45 million during Q4 2025, marking it as the fund's 11th largest holding and reflecting confidence in the cloud computing market.
  • Asset Management Impact: This acquisition accounts for 1.96% of Glenview's 13F reportable assets, indicating the fund's recognition of DigitalOcean's future growth potential, despite the stock experiencing a roughly 15% decline following its Q4 earnings report.
  • Market Performance Analysis: As of February 27, 2026, DigitalOcean's shares were priced at $56.06, representing a 31.3% increase over the past year, with a 14 percentage-point alpha over the S&P 500, showcasing its competitive edge in the cloud computing sector.
  • Future Growth Potential: DigitalOcean plans to add 31 megawatts of new data center capacity, which may temporarily impact profitability; however, the CEO stated the company is transitioning to serve larger clients, with expected sales growth of 25% by the end of 2026, providing investors with long-term growth confidence.
Wall Street analysts forecast DOCN stock price to rise
5 Analyst Rating
Wall Street analysts forecast DOCN stock price to rise
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 0.000
sliders
Low
50.00
Averages
63.60
High
72.00
Current: 0.000
sliders
Low
50.00
Averages
63.60
High
72.00
UBS
Radi Sultan
Neutral
downgrade
$68 -> $62
AI Analysis
2026-03-04
Reason
UBS
Radi Sultan
Price Target
$68 -> $62
AI Analysis
2026-03-04
downgrade
Neutral
Reason
UBS analyst Radi Sultan lowered the firm's price target on DigitalOcean to $62 from $68 and keeps a Neutral rating on the shares.
UBS
Neutral
maintain
$48 -> $68
2026-02-25
Reason
UBS
Price Target
$48 -> $68
2026-02-25
maintain
Neutral
Reason
UBS raised the firm's price target on DigitalOcean to $68 from $48 and keeps a Neutral rating on the shares. DigitalOcean delivered a solid Q4 and provided 2026 revenue growth guidance of 21%, in line with investor expectations, while 2027 guidance targets 30% growth, achievable with the 31MW coming online in 2026 and implying potential upside to 35%-40%+ with further capacity expansion, the analyst tells investors in a research note.
Unlock Full Analyst Thesis, Get the complete breakdown of rating reason for DOCN
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Valuation Metrics

The current forward P/E ratio for DigitalOcean Holdings Inc (DOCN.N) is 26.88, compared to its 5-year average forward P/E of 49.56. For a more detailed relative valuation and DCF analysis to assess DigitalOcean Holdings Inc's fair value, Click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.
StronglyUndervaluedUndervaluedFairOvervaluedStronglyOvervalueddotted line Image
N/A
5Y Average PE
49.56
Current PE
26.88
Overvalued PE
102.34
Undervalued PE
-3.22

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.
StronglyUndervaluedUndervaluedFairOvervaluedStronglyOvervalueddotted line Image
5Y Average EV/EBITDA
20.44
Current EV/EBITDA
14.89
Overvalued EV/EBITDA
32.85
Undervalued EV/EBITDA
8.03

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.
StronglyUndervaluedUndervaluedFairOvervaluedStronglyOvervalueddotted line Image
5Y Average PS
6.37
Current PS
4.40
Overvalued PS
10.76
Undervalued PS
1.98

Financials

AI Analysis
Annual
Quarterly

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Whales Holding DOCN

A
Access Industries, Inc.
Holding
DOCN
+38.39%
3M Return
O
Oberweis Asset Management, Inc.
Holding
DOCN
+19.64%
3M Return
C
Cushing Asset Management, LP
Holding
DOCN
+14.54%
3M Return
L
LMR Partners LLP
Holding
DOCN
+12.40%
3M Return
V
Van Berkom and Associates Inc.
Holding
DOCN
+2.65%
3M Return
G
Glenview Capital Management, LLC
Holding
DOCN
-4.77%
3M Return

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Frequently Asked Questions

What is DigitalOcean Holdings Inc (DOCN) stock price today?

The current price of DOCN is 62.01 USD — it has increased 7.79

What is DigitalOcean Holdings Inc (DOCN)'s business?

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.

What is the price predicton of DOCN Stock?

Wall Street analysts forecast DOCN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOCN is63.60 USD with a low forecast of 50.00 USD and a high forecast of 72.00 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.

What is DigitalOcean Holdings Inc (DOCN)'s revenue for the last quarter?

DigitalOcean Holdings Inc revenue for the last quarter amounts to 242.39M USD, increased 18.28

What is DigitalOcean Holdings Inc (DOCN)'s earnings per share (EPS) for the last quarter?

DigitalOcean Holdings Inc. EPS for the last quarter amounts to 0.23 USD, increased 15.00

How many employees does DigitalOcean Holdings Inc (DOCN). have?

DigitalOcean Holdings Inc (DOCN) has 1462 emplpoyees as of March 11 2026.

What is DigitalOcean Holdings Inc (DOCN) market cap?

Today DOCN has the market capitalization of 5.70B USD.