DOCN

DigitalOcean Holdings Inc

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Advanced Chart

28.820

+0.04(0.139%)1D

Overview
Forecast
Valuation
Earnings

Line

Candle

YTD

High

29.270

Open

29.175

VWAP

28.81

Vol

1.82M

Mkt Cap

2.62B

Low

28.450

Amount

52.57M

EV/EBITDA(TTM)

14.79

Total Shares

91.09M

3.75B

EV/OCF(TTM)

13.38

P/S(TTM)

3.49

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.

Market Estimates

Earnings Estimates

Revenue

YoY Chg

EPS

YoYChg

FY2025Q2

FY2025Q3

FY2025Q4

216.62M

+12.55%

0.468

-2.59%

223.62M

+12.66%

0.470

-9.61%

231.48M

+12.96%

0.462

-5.68%

Estimates Revision

The market is revising Downward the revenue expectations for DigitalOcean Holdings, Inc. (DOCN) for FY2025, with the revenue forecasts being adjusted by -0.12% over the past three months. During the same period, the stock price has changed by -3.77%.

Revenue Estimates for FY2025

Revise Downward

-0.12%

In Past 3 Month

EPS Estimates for FY2025

Revise Upward

+1.98%

In Past 3 Month

Stock Price

Go Down

-3.77%

In Past 3 Month

12 Analyst Rating

35.32% Upside

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 is 39.00 USD with a low forecast of 31.00 USD and a high forecast of 55.00 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.

7 Buy

4 Hold

1 Sell

Moderate Buy

35.32% Upside

Current: 28.820

Low

31.00

Averages

39.00

High

55.00

35.32% Upside

Current: 28.820

Low

31.00

Averages

39.00

High

55.00

UBS

Neutral

downgrade

$44 -> $32

2025-05-08

Reason

UBS

Price Target

$44 -> $32

2025-05-08

downgrade

Neutral

Reason

Barclays

Raimo Lenschow

Buy

Maintains

$48 → $38

2025-04-21

Reason

Barclays

Raimo Lenschow

Price Target

$48 → $38

2025-04-21

Maintains

Buy

Reason

Morgan Stanley

Josh Baer

Buy

Maintains

$52 → $41

2025-04-16

Reason

Morgan Stanley

Josh Baer

Price Target

$52 → $41

2025-04-16

Maintains

Buy

Reason

Morgan Stanley lowered the firm's price target on DigitalOcean to $41 from $52 and keeps an Overweight rating on the shares. The firm is adjusting risk/rewards for a large number of software companies as it analyzes tariff risk uncertainty and what has already been priced into shares.

Needham

Mike Cikos

Hold

Reiterates

n/a

2025-04-07

Reason

Needham

Mike Cikos

Price Target

n/a

2025-04-07

Reiterates

Hold

Reason

Canaccord Genuity

David Hynes

Strong Buy

Maintains

$50 → $45

2025-04-07

Reason

Canaccord Genuity

David Hynes

Price Target

$50 → $45

2025-04-07

Maintains

Strong Buy

Reason

Canaccord lowered the firm's price target on DigitalOcean to $45 from $50 and keeps a Buy rating on the shares. The firm attended its analyst day and said the the event served as a fitting platform for an entirely fresh management team to articulate the state of the business and the thesis for the turnaround. Key points include the company is serving unmet needs for digitally native enterprises that fully rely on cloud services to run their businesses, lower complexity and competitive pricing leads to meaningfully lower TCO compared to hyperscalers, and increased product velocity is driving expansionary green shoots in large customers while raising the spend ceiling well over $1M.

Stifel

Brad Reback

Hold

Maintains

$40 → $33

2025-04-07

Reason

Stifel

Brad Reback

Price Target

$40 → $33

2025-04-07

Maintains

Hold

Reason

Stifel lowered the firm's price target on DigitalOcean to $33 from $40 and keeps a Hold rating on the shares after having attended the company's investor day. At the event, management outlined plans to accelerate growth by targeting larger customers, expanding its go-to-market approach, and its easy-to-use AI platform, notes the analyst. While the firm believes DigitalOcean's focus on accelerating growth is the right strategy, it lowers its target given the near-term balance-sheet uncertainty and GPU pricing environment.

See All Ratings

Valuation Metrics

The current forward P/E ratio for DigitalOcean Holdings Inc (DOCN.N) is 15.28, compared to its 5-year average forward P/E of 52.59. 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.

N/A

5Y Average PE

52.59

Current PE

15.28

Overvalued PE

107.19

Undervalued PE

-2.01

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.

Fair

5Y Average EV/EBITDA

21.24

Current EV/EBITDA

11.53

Overvalued EV/EBITDA

34.01

Undervalued EV/EBITDA

8.48

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.

Fair

5Y Average PS

6.66

Current PS

2.91

Overvalued PS

11.17

Undervalued PS

2.15