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Upturn AI SWOT - About
DOCN 
DigitalOcean Holdings Inc (DOCN)
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Upturn Advisory Summary
09/17/2025: DOCN (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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 $41.6
1 Year Target Price $41.6
| 3 | Strong Buy |
| 4 | Buy |
| 6 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -20.27% | Avg. Invested days 26 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.31B USD | Price to earnings Ratio 27.73 | 1Y Target Price 41.6 |
Price to earnings Ratio 27.73 | 1Y Target Price 41.6 | ||
Volume (30-day avg) 14 | Beta 1.76 | 52 Weeks Range 25.45 - 47.02 | Updated Date 09/17/2025 |
52 Weeks Range 25.45 - 47.02 | Updated Date 09/17/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.31 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 15.18% | Operating Margin (TTM) 16.29% |
Management Effectiveness
Return on Assets (TTM) 5.19% | Return on Equity (TTM) -38.68% |
Valuation
Trailing PE 27.73 | Forward PE 15.65 | Enterprise Value 4683230302 | Price to Sales(TTM) 3.97 |
Enterprise Value 4683230302 | Price to Sales(TTM) 3.97 | ||
Enterprise Value to Revenue 5.62 | Enterprise Value to EBITDA 16.82 | Shares Outstanding 91037504 | Shares Floating 67714601 |
Shares Outstanding 91037504 | Shares Floating 67714601 | ||
Percent Insiders 25.83 | Percent Institutions 68.92 |
Upturn AI SWOT
DigitalOcean Holdings Inc
Company Overview
History and Background
DigitalOcean was founded in 2011 and quickly became a popular cloud hosting provider catering to developers and small to medium-sized businesses. It focused on simple, scalable infrastructure solutions and a developer-friendly experience.
Core Business Areas
- Infrastructure-as-a-Service (IaaS): Provides compute, storage, and networking resources through virtual servers (Droplets), block storage, object storage, and load balancing.
- Platform-as-a-Service (PaaS): Offers managed databases, application deployment platforms, and other services designed to simplify application development and deployment.
- Other Services: Includes services such as DNS management, container registries, and serverless functions.
Leadership and Structure
DigitalOcean is led by CEO Paddy Srinivasan. The company has a functional organizational structure with departments focused on engineering, product, marketing, sales, and customer support.
Top Products and Market Share
Key Offerings
- Droplets (Virtual Servers): DigitalOcean's core offering, providing virtual machines for compute resources. Competitors include AWS EC2, Google Compute Engine, and Azure Virtual Machines. Market share is estimated around 5-7% in the IaaS segment. Revenue is a major portion of their total revenue.
- Managed Databases: Managed database services simplify database deployment and maintenance. Competitors include AWS RDS, Google Cloud SQL, and Azure SQL Database. Market share is smaller, estimated around 1-2% in the managed database segment.Revenue is a substantial portion of their total revenue.
- Spaces (Object Storage): Scalable object storage for storing and serving files. Competitors include AWS S3, Google Cloud Storage, and Azure Blob Storage. Market share is smaller, estimated around 1-2% in the Object storage market. Revenue contributes to their IaaS offerings.
Market Dynamics
Industry Overview
The cloud computing market is experiencing rapid growth, driven by the increasing adoption of digital transformation, remote work, and data-intensive applications. The competitive landscape is dominated by major players such as AWS, Azure, and Google Cloud, but smaller players like DigitalOcean carve out niches by targeting specific customer segments and offering specialized solutions.
Positioning
DigitalOcean is positioned as a cloud provider for developers, startups, and small to medium-sized businesses, emphasizing simplicity, ease of use, and developer-friendly tools. Its competitive advantages include a streamlined user experience, predictable pricing, and a strong developer community.
Total Addressable Market (TAM)
The total addressable market for cloud computing is estimated to be in the hundreds of billions of dollars. DigitalOcean is positioned to capture a significant portion of the SMB and developer segment within this market. Estimates range from 700 Billion to 1 Trillion by 2027.
Upturn SWOT Analysis
Strengths
- Strong brand recognition among developers
- Simple and easy-to-use platform
- Predictable pricing
- Strong developer community
- Focus on SMB and startup market
Weaknesses
- Smaller scale compared to major cloud providers
- Limited enterprise features
- Reliance on a specific customer segment
- Lower product diversity compared to larger competitors
Opportunities
- Expanding into new geographic regions
- Offering more managed services
- Partnering with other technology companies
- Capitalizing on the growing demand for cloud computing among SMBs
Threats
- Intense competition from major cloud providers
- Price wars
- Changing technology trends
- Security breaches
- Economic downturns
Competitors and Market Share
Key Competitors
- AMZN
- MSFT
- GOOG
Competitive Landscape
DigitalOcean's competitive advantage lies in its simplicity and developer-friendly approach. However, it faces intense competition from larger cloud providers with more comprehensive offerings and greater financial resources.
Major Acquisitions
Nimbella
- Year: 2021
- Acquisition Price (USD millions): 1.5
- Strategic Rationale: Accelerated DigitalOceanu2019s serverless computing roadmap.
Growth Trajectory and Initiatives
Historical Growth: DigitalOcean has experienced strong revenue growth over the past few years, driven by the increasing adoption of its cloud platform. [Numerical values and percentages would be placed here based on the analysis of financial statements]
Future Projections: Analyst estimates for DigitalOcean's future growth vary, but most expect the company to continue growing at a healthy rate. [Numerical values and percentages would be placed here based on analyst forecasts]
Recent Initiatives: Recent strategic initiatives include expanding its product portfolio with new managed services, investing in its developer community, and expanding into new geographic regions.
Summary
DigitalOcean is a solid cloud provider focusing on developers and SMBs with a simple and easy-to-use platform. It has experienced growth but faces competition from larger players. Its key strengths are its brand recognition and developer community, while its weaknesses include a smaller scale. DigitalOcean needs to continue expanding its offerings and targeting its specific market segment while facing threats from larger, more resourced competitors.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Industry Reports (Gartner, Forrester)
- Analyst Reports
- Company Website
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on thorough research and consultation with a financial advisor. Market data is dynamic and subject to change.
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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