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Upturn AI SWOT - About
DOCN 
DigitalOcean Holdings Inc (DOCN)
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Upturn Advisory Summary
08/28/2025: 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 $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 -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 08/28/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.04B USD | Price to earnings Ratio 25.47 | 1Y Target Price 41.6 |
Price to earnings Ratio 25.47 | 1Y Target Price 41.6 | ||
Volume (30-day avg) 14 | Beta 1.75 | 52 Weeks Range 25.45 - 47.02 | Updated Date 08/29/2025 |
52 Weeks Range 25.45 - 47.02 | Updated Date 08/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.31 |
Earnings Date
Report Date 2025-08-05 | When - | Estimate 0.47 | Actual 0.59 |
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 25.47 | Forward PE 16.26 | Enterprise Value 4412848933 | Price to Sales(TTM) 3.65 |
Enterprise Value 4412848933 | Price to Sales(TTM) 3.65 | ||
Enterprise Value to Revenue 5.3 | Enterprise Value to EBITDA 15.85 | Shares Outstanding 91037504 | Shares Floating 67836592 |
Shares Outstanding 91037504 | Shares Floating 67836592 | ||
Percent Insiders 25.88 | Percent Institutions 68.96 |
Upturn AI SWOT
DigitalOcean Holdings Inc
Company Overview
History and Background
DigitalOcean was founded in 2011 and has grown from a simple cloud hosting provider to a comprehensive platform for developers and small to medium-sized businesses (SMBs). It initially focused on providing easy-to-use and affordable virtual servers.
Core Business Areas
- Infrastructure as a Service (IaaS): Provides virtual servers, storage, and networking resources, enabling users to deploy and manage applications in the cloud.
- Platform as a Service (PaaS): Offers managed databases, Kubernetes, and other platform services, simplifying application development and deployment.
- Developer Tools and Resources: Provides a marketplace of pre-built applications, tutorials, and documentation, fostering a strong developer community.
Leadership and Structure
DigitalOcean is led by CEO Paddy Srinivasan. The organizational structure consists of various departments including engineering, product, sales, marketing, and customer support.
Top Products and Market Share
Key Offerings
- Droplets: Virtual servers are the core product, offering scalable compute resources. Competitors include AWS EC2, Google Compute Engine, and Azure Virtual Machines. DigitalOcean's market share in the overall cloud infrastructure market is smaller than the major players but they focus on developer friendly tools and ease of use.
- Managed Databases: Managed database services include MySQL, PostgreSQL, and Redis. This simplifies database administration and scaling. Competitors include AWS RDS, Google Cloud SQL, and Azure Database.
- Kubernetes: DigitalOcean Kubernetes (DOKS) is a managed Kubernetes service. Competitors include AWS EKS, Google Kubernetes Engine, and Azure Kubernetes Service.
Market Dynamics
Industry Overview
The cloud computing industry is experiencing rapid growth, driven by increased demand for digital transformation, remote work, and scalable IT infrastructure. IaaS and PaaS are significant sectors within this industry.
Positioning
DigitalOcean is positioned as a developer-friendly and SMB-focused cloud provider, emphasizing simplicity, affordability, and a strong community. Its competitive advantage lies in its user-friendly interface and pricing.
Total Addressable Market (TAM)
The total addressable market for cloud computing is in the hundreds of billions of dollars and growing. DigitalOcean is positioned to capture a significant share of the SMB market within this TAM.
Upturn SWOT Analysis
Strengths
- Strong brand reputation among developers
- Simple and affordable pricing
- User-friendly platform
- Active developer community
- Focus on SMBs
Weaknesses
- Smaller market share compared to AWS, Azure, and Google Cloud
- Less mature enterprise features
- Limited geographic presence in some regions
- Reliance on a specific market segment (SMBs)
Opportunities
- Expanding into new geographic regions
- Developing more enterprise-grade features
- Increasing adoption of cloud computing by SMBs
- Partnering with other technology companies
- Growing developer community and contributions
Threats
- Intense competition from larger cloud providers
- Economic downturn impacting SMB spending
- Rapid technological changes
- Security vulnerabilities
- Increased regulatory scrutiny
Competitors and Market Share
Key Competitors
- AMZN
- MSFT
- GOOGL
- IBM
- ORCL
Competitive Landscape
DigitalOcean differentiates itself by focusing on simplicity, affordability, and a developer-friendly experience. While it has a smaller market share compared to AWS, Azure, and Google Cloud, it caters to a specific niche of SMBs and developers.
Major Acquisitions
Paperspace
- Year: 2023
- Acquisition Price (USD millions): 0
- Strategic Rationale: Expanded DigitalOcean's AI/ML capabilities by adding GPU-based cloud infrastructure.
Growth Trajectory and Initiatives
Historical Growth: DigitalOcean has demonstrated substantial growth in revenue and customer base over the past several years, driven by increased adoption of its cloud platform among SMBs and developers.
Future Projections: Future growth projections depend on market conditions, competitive landscape, and DigitalOcean's strategic initiatives. Analyst estimates typically forecast continued revenue growth, driven by increased cloud adoption and expansion into new markets.
Recent Initiatives: Recent initiatives include expanding its product offerings, investing in its developer community, and strengthening its partnerships.
Summary
DigitalOcean is a growing cloud provider focused on developers and SMBs. Its user-friendly platform and affordable pricing are key strengths. However, it faces intense competition from larger players and needs to expand its enterprise features. The recent Paperspace acquisition provides more capability and growth in the AI/ML space, a fast-growing segment. Keeping a focus on financial performance and developer community building will be keys to success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
- Press Releases
- Third-Party Data Providers
Disclaimers:
This analysis is based on available information and is not financial advice. Market conditions and company performance are 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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