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DOCN
Upturn stock ratingUpturn stock rating

DigitalOcean Holdings Inc (DOCN)

Upturn stock ratingUpturn stock rating
$29.83
Last Close (24-hour delay)
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PASS
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
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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

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

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

Analysts Price Target For last 52 week
$38.5 Target price
52w Low $25.45
Current$29.83
52w High $47.02

Analysis of Past Performance

Type Stock
Historic Profit -29.36%
Avg. Invested days 28
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn 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

ai summary icon Upturn AI SWOT

DigitalOcean Holdings Inc

stock logo

Company Overview

overview logo 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.

business area logo 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 logo 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

overview logo 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 logo 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

competitor logo 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.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 1210

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.