DOCN

DigitalOcean Holdings Inc

Add to Watchlist

Advanced Chart

31.700

+0.66(2.126%)1D

Overview
Forecast
Valuation
Earnings

Line

Candle

YTD

High

31.950

Open

30.890

VWAP

31.60

Vol

2.16M

Mkt Cap

2.89B

Low

30.741

Amount

68.13M

EV/EBITDA(TTM)

15.22

Total Shares

91.09M

3.99B

EV/OCF(TTM)

13.24

P/S(TTM)

3.79

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

FY2026Q1

FY2025Q4

FY2025Q3

241.60M

+14.66%

0.489

-12.64%

234.46M

+14.41%

0.467

-4.79%

226.55M

+14.14%

0.490

-5.73%

Estimates Revision

The market is revising Upward the revenue expectations for DigitalOcean Holdings, Inc. (DOCN) for FY2025, with the revenue forecasts being adjusted by 0.95% over the past three months. During the same period, the stock price has changed by 4.48%.

Revenue Estimates for FY2025

Revise Upward

+0.95%

In Past 3 Month

EPS Estimates for FY2025

Revise Downward

-0.14%

In Past 3 Month

Stock Price

Go Up

+4.48%

In Past 3 Month

11 Analyst Rating

25.49% 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 39.78 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

3 Hold

1 Sell

Moderate Buy

25.49% Upside

Current: 31.700

Low

31.00

Averages

39.78

High

55.00

25.49% Upside

Current: 31.700

Low

31.00

Averages

39.78

High

55.00

Canaccord

Buy

upgrade

$45 -> $49

2025-08-06

Reason

Canaccord

Price Target

$45 -> $49

2025-08-06

upgrade

Buy

Reason

Canaccord raised the firm's price target on DigitalOcean to $49 from $45 and keeps a Buy rating on the shares. The firm said they delivered in Q2 with continued strong top-line momentum underpinned by positive demand signals across the business with 70+ competitive cloud migrations and AI/ML revenue more than doubling year-over-year. After maintaining guidance in Q1, guidance was materially raised for all metrics.

Stifel

Hold

maintain

$33 -> $36

2025-08-05

Reason

Stifel

Price Target

$33 -> $36

2025-08-05

maintain

Hold

Reason

Stifel raised the firm's price target on DigitalOcean to $36 from $33 and keeps a Hold rating on the shares. Shares are up about 25% following a "solid 2Q beat-and-raise print," notes the analyst, who also notes that management raised its FY25 guidance "across the board." DigitalOcean should sustain its mid-teens revenue growth rate, but given potential calendar year 2026 free cash flow headwinds related to debt refinancing, the firm expects the multiple to "remain at current levels," the analyst added.

BofA

Underperform

maintain

$31 -> $34

2025-08-05

Reason

BofA

Price Target

$31 -> $34

2025-08-05

maintain

Underperform

Reason

BofA raised the firm's price target on DigitalOcean to $34 from $31 and keeps an Underperform rating on the shares. The company reported strong Q2 results, beating guidance and Street expectations on revenue and earnings per share, with management raising FY25 guidance across all metrics due to the outperformance in the quarter and a strong demand environment, the analyst tells investors in a research note. While encouraged by these recent trends, the firm notes that profitability remains "lumpy" and gross margins have decreased. The analyst added that the firm believes DigitalOcean is headed in the right trajectory for growth.

UBS

Neutral

downgrade

$44 -> $32

2025-05-08

Reason

UBS

Price Target

$44 -> $32

2025-05-08

downgrade

Neutral

Reason

UBS lowered the firm's price target on DigitalOcean to $32 from $44 and keeps a Neutral rating on the shares. Shares declined 14% following the Q1 print amid a "skinnier" topline beat and lack of meaningful cash generation in the quarter, the analyst tells investors in a research note. The magnitude of the stock movement seems overly punitive, the firm argues.

Barclays

Raimo Lenschow

Buy

Maintains

$48 → $38

2025-04-21

Reason

Barclays

Raimo Lenschow

Price Target

$48 → $38

2025-04-21

Maintains

Buy

Reason

Barclays lowered the firm's price target on DigitalOcean to $38 from $48 and keeps an Overweight rating on the shares as part of a Q1 earnings preview for U.S. software. The firm says Q1 "will unlikely be a major catalyst" for stocks in the sector. Channel checks are "weaker but not a disaster," but investors will likely focus more on guidance anyway, the analyst tells investors in a research note. Barclays is not sure many management teams will lower numbers meaningfully given Q1 is a small quarter. "This means we will remain in limbo until Q2," the firm contends.

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.

See All Ratings

Valuation Metrics

The current forward P/E ratio for DigitalOcean Holdings Inc (DOCN.N) is 16.11, compared to its 5-year average forward P/E of 51.95. 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

51.95

Current PE

16.11

Overvalued PE

106.29

Undervalued PE

-2.40

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

21.07

Current EV/EBITDA

11.14

Overvalued EV/EBITDA

33.80

Undervalued EV/EBITDA

8.34

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

6.59

Current PS

2.97

Overvalued PS

11.10

Undervalued PS

2.09