DigitalOcean Holdings, Inc.
DigitalOcean Holdings, Inc. (DOCN) is a cloud infrastructure provider that tailors products to developers, startups and small-to-medium businesses. Unlike hyperscale rivals, DigitalOcean focuses on simplicity, predictable pricing and an easy-to-use control plane for deploying apps, databases and storage. Revenue comes from a mix of subscription-style droplets (VMs), managed services and usage-based charges; recurring revenue and customer retention are key metrics to watch. The company faces intense competition from AWS, Microsoft Azure and Google Cloud, which limits pricing power but also leaves niches where simplicity and developer-focused features can win share. Investors should consider growth prospects against margin pressure, capital intensity and the potential for churn. With a market capitalisation near $3.62bn, the stock may suit investors comfortable with growth-stage tech risk. This is educational information, not personal investment advice — values can fall as well as rise and past performance is not a guide to the future.
Stock Performance Snapshot
Analyst Rating
Analysts recommend buying DigitalOcean's stock with a target price of $51.82, indicating potential growth.
Financial Health
DigitalOcean is producing solid revenue and cash flow, indicating strong operational performance and profitability.
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Published: June 17, 2025
Explore BasketWhy You’ll Want to Watch This Stock
Developer-first Cloud
DigitalOcean’s simplicity and developer focus can attract small teams and startups, though competition from larger providers may limit market share gains.
Recurring Revenue Focus
A steady mix of subscription and usage billing supports predictable revenue, yet margins and growth depend on customer retention and upselling.
Competition & Scaling
Scaling infrastructure and differentiating features are essential for growth, but capital intensity and pricing pressure are ongoing risks for investors.
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