DigitalOcean (NYSE:DOCN) Issues Q1 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN - Get Free Report) issued an update on its first quarter 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.410-0.460 for the period, compared to the consensus estimate of 0.440. The company issued revenue guidance of $207.0 million-$209.0 million, compared to the consensus revenue estimate of $208.6 million. DigitalOcean also updated its FY 2025 guidance to 1.850-1.950 EPS.

DigitalOcean Stock Performance

Shares of DigitalOcean stock traded down $1.13 on Monday, reaching $26.25. 287,466 shares of the company's stock were exchanged, compared to its average volume of 1,294,957. The company has a market capitalization of $2.41 billion, a P/E ratio of 30.88, a price-to-earnings-growth ratio of 3.12 and a beta of 1.87. The firm's 50-day moving average is $36.12 and its two-hundred day moving average is $37.93. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $47.02.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Stifel Nicolaus decreased their price objective on DigitalOcean from $40.00 to $33.00 and set a "hold" rating for the company in a report on Monday, April 7th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of DigitalOcean in a research report on Saturday, March 1st. JPMorgan Chase & Co. boosted their target price on shares of DigitalOcean from $40.00 to $45.00 and gave the company a "neutral" rating in a research note on Wednesday, February 26th. UBS Group upped their price objective on shares of DigitalOcean from $39.00 to $44.00 and gave the company a "neutral" rating in a report on Wednesday, February 26th. Finally, JMP Securities increased their price objective on DigitalOcean from $47.00 to $55.00 and gave the stock a "market outperform" rating in a report on Monday, January 27th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $41.27.

Insiders Place Their Bets

In related news, insider Bratin Saha sold 3,948 shares of the company's stock in a transaction on Tuesday, March 18th. The shares were sold at an average price of $36.63, for a total transaction of $144,615.24. Following the completion of the sale, the insider now directly owns 358,696 shares in the company, valued at $13,139,034.48. This represents a 1.09 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 0.74% of the company's stock.

About DigitalOcean

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).