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Upturn AI SWOT - About
DigitalOcean Holdings Inc (DOCN)
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Upturn Advisory Summary
07/09/2025: DOCN (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
14 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $38.5
1 Year Target Price $38.5
| 3 | Strong Buy |
| 4 | Buy |
| 6 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -29.36% | Avg. Invested days 28 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/09/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.68B USD | Price to earnings Ratio 26.07 | 1Y Target Price 38.5 |
Price to earnings Ratio 26.07 | 1Y Target Price 38.5 | ||
Volume (30-day avg) 14 | Beta 1.78 | 52 Weeks Range 25.45 - 47.02 | Updated Date 07/9/2025 |
52 Weeks Range 25.45 - 47.02 | Updated Date 07/9/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.13 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 13.46% | Operating Margin (TTM) 17.86% |
Management Effectiveness
Return on Assets (TTM) 4.89% | Return on Equity (TTM) -38.68% |
Valuation
Trailing PE 26.07 | Forward PE 15.38 | Enterprise Value 4063254734 | Price to Sales(TTM) 3.32 |
Enterprise Value 4063254734 | Price to Sales(TTM) 3.32 | ||
Enterprise Value to Revenue 5.04 | Enterprise Value to EBITDA 15.56 | Shares Outstanding 91033504 | Shares Floating 67814516 |
Shares Outstanding 91033504 | Shares Floating 67814516 | ||
Percent Insiders 25.88 | Percent Institutions 64.86 |
Upturn AI SWOT
DigitalOcean Holdings Inc
Company Overview
History and Background
DigitalOcean was founded in 2011 and has grown from a simple cloud server provider to a platform focused on developers, startups, and SMBs. It went public in March 2021.
Core Business Areas
- Infrastructure as a Service (IaaS): Provides cloud infrastructure services including virtual machines (Droplets), block storage, and networking.
- Platform as a Service (PaaS): Offers tools and services that simplify application deployment and management, such as managed databases and Kubernetes.
- Solutions: Provides pre-configured solutions and guides for common developer tasks and projects.
Leadership and Structure
The leadership team includes CEO Paddy Srinivasan. The company is structured around product, engineering, sales, and marketing functions.
Top Products and Market Share
Key Offerings
- Droplets (Virtual Machines): DigitalOcean's core compute offering, providing virtual machines with various configurations. Competitors include AWS EC2, Google Compute Engine, and Azure Virtual Machines. Market share data is unavailable.
- Managed Databases: Managed database services for PostgreSQL, MySQL, and Redis, simplifying database management. Competitors include Amazon RDS, Google Cloud SQL, and Azure SQL Database. Market share data is unavailable.
- Kubernetes: Managed Kubernetes service (DOKS) that allows users to deploy and manage containerized applications. Competitors include Amazon EKS, Google Kubernetes Engine (GKE), and Azure Kubernetes Service (AKS). Market share data is unavailable.
- App Platform: DigitalOcean's Platform-as-a-Service (PaaS) offering that simplifies deploying and scaling web apps. Competitors include Heroku, AWS App Runner, and Google App Engine. Market share data is unavailable.
Market Dynamics
Industry Overview
The cloud computing industry is experiencing rapid growth, driven by increasing demand for scalable and cost-effective IT infrastructure. Competition is intense, with major players like AWS, Azure, and Google Cloud dominating the market.
Positioning
DigitalOcean focuses on providing simple and affordable cloud solutions for developers, startups, and SMBs, differentiating itself from larger providers that often cater to enterprise clients. Competitive advantages include ease of use and a strong community.
Total Addressable Market (TAM)
The cloud computing market is expected to reach trillions of dollars in the coming years. DigitalOcean is positioned to capture a portion of the market by serving the developer and SMB segment.
Upturn SWOT Analysis
Strengths
- Simple and easy-to-use platform
- Strong developer community
- Affordable pricing
- Focus on SMBs and startups
Weaknesses
- Smaller scale and fewer services compared to AWS, Azure, and Google Cloud
- Limited enterprise features
- Lower brand recognition compared to larger competitors
Opportunities
- Expanding service offerings to meet evolving customer needs
- Growing adoption of cloud computing among SMBs
- Partnerships with other technology companies
- International expansion
Threats
- Intense competition from larger cloud providers
- Rapid technological changes in the cloud computing industry
- Economic downturns impacting SMB spending
- Security and compliance risks
Competitors and Market Share
Key Competitors
- AMZN
- MSFT
- GOOGL
Competitive Landscape
DigitalOcean differentiates itself through its simplicity and focus on developers and SMBs, while AWS, Azure, and Google Cloud offer a broader range of services and cater to larger enterprises.
Growth Trajectory and Initiatives
Historical Growth: Historical growth information can be found in past financial reports and investor presentations. DigitalOcean has experienced growth in its user base and revenue since its founding.
Future Projections: Future growth projections are typically available from analyst reports and company guidance. Consult financial news sources for analyst estimates.
Recent Initiatives: Recent initiatives might include new product launches, partnerships, and expansions into new markets. Check DigitalOcean's press releases and investor relations website.
Summary
DigitalOcean is a cloud platform provider focused on simplifying cloud infrastructure for developers and small to medium-sized businesses. Its strengths lie in its ease of use and developer-friendly tools. It faces significant competition from larger players like AWS, Azure, and Google Cloud. The company needs to continue innovating and expanding its service offerings to remain competitive and capture a larger share of the cloud market.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- Financial News Sources
- Analyst Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share data is approximate and may vary depending on the source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About DigitalOcean Holdings Inc
Exchange NYSE | Headquaters New York, NY, United States | ||
IPO Launch date 2021-03-24 | CEO & Director Mr. Padmanabhan T. Srinivasan | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 1210 | Website https://www.digitalocean.com |
Full time employees 1210 | Website https://www.digitalocean.com | ||
DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company provides on-demand infrastructure and platform tools for developers at growing technology companies. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute, storage, and networking products, including cloud firewalls, managed load balancers, and virtual private cloud software, as well as IP address management and domain name system management. In addition, the company provides platform-as-a-service (PaaS) and software-as-a-service (SaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. Further, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU droplets; GENAI platform, a solution for deploying AI applications; bare metal GPUS which provides access to a GPU server without any virtualization layer and gives developers with customizable server for their use case; and Jupyter Notebooks that provides cloud workspace and managed interactive development environment for exploring data and training, and building machine learning models. Its customers use its platform in various industry verticals, such as gaming, fintech, and cybersecurity, as well as for a range of use cases, including building and hosting websites, web and mobile applications development, AI integration, and building AI products and applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.
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