DigitalOcean (DOCN) Stock Price, News & Analysis

Company Overview

DigitalOcean is a cloud infrastructure provider that specializes in delivering simplicity, performance and scale to developers, startups and small- to medium-sized businesses. The company’s core offering revolves around virtual private servers known as “Droplets,” which allow users to deploy and manage applications with minimal configuration. DigitalOcean has positioned itself as a user-friendly alternative to larger hyperscale cloud providers by combining an intuitive control panel, transparent pricing and a focus on developer-centric resources.

The company’s product suite extends beyond basic compute instances to encompass a range of cloud services. These include DigitalOcean Kubernetes for container orchestration, App Platform for simplified application deployment, Managed Databases for PostgreSQL, MySQL and Redis, as well as Block Storage and Object Storage solutions. Networking features such as Virtual Private Clouds, Load Balancers and Floating IPs help customers build secure, scalable architectures, while DigitalOcean’s Marketplace offers preconfigured one-click applications and developer tools.

Founded in 2011 and headquartered in New York City, DigitalOcean was established with the goal of making cloud computing more accessible to the developer community. The company’s founders—Moisey Uretsky, Ben Uretsky and Alec Hartman—laid the groundwork for a service designed to remove complexity from infrastructure management. Today, under the leadership of CEO Yancey Spruill, DigitalOcean has grown its global footprint to include data centers across North America, Europe and Asia-Pacific, supporting a diverse base of customers.

DigitalOcean’s emphasis on community engagement is reflected in its extensive documentation, tutorials and Q&A forums, which foster knowledge sharing and best practices among users. Serving developers, small businesses and digital agencies worldwide, the company continues to invest in its platform with new features and performance enhancements. Its streamlined approach to cloud infrastructure has earned a reputation for reliability and cost-effectiveness, making DigitalOcean a recognized name in the competitive cloud market.

Key Stats

• Today's Range: $28.70 to $29.25
• 50-Day Range: $26.76 to $32.77
• 52-Week Range: $25.45 to $47.02
• Volume: 739,743 shs
• Average Volume: 1.30 million shs
• Market Capitalization: $2.66 billion
• P/E Ratio: 26.30
• Dividend Yield: N/A
• Price Target: $39.83
• Consensus Rating: Hold

DigitalOcean Stock Analysis - MarketRank™

DigitalOcean scored higher than 54% of companies evaluated by MarketBeat, and ranked 1141st out of 1,998 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 4.2 / 5
• Analyst Rating: Hold

Consensus Rating

DigitalOcean has received a consensus rating of Hold. The company's average rating score is 2.38, and is based on 6 buy ratings, 6 hold ratings, and 1 sell rating.

Amount of Analyst Coverage

DigitalOcean has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 0.6 / 5
• Proj. Earnings Growth: -11.88%

Earnings Growth

Earnings for DigitalOcean are expected to decrease by -11.88% in the coming year, from $1.01 to $0.89 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of DigitalOcean is 26.30, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 25.53.

Price to Earnings Ratio vs. Sector

The P/E ratio of DigitalOcean is 26.30, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 36.23.

Price to Earnings Growth Ratio

DigitalOcean has a PEG Ratio of 2.08. PEG Ratios above 1 indicate that a company could be overvalued.

Short Interest

• Score: 1.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

12.97% of the float of DigitalOcean has been sold short.

Short Interest Ratio / Days to Cover

DigitalOcean has a short interest ratio ("days to cover") of 5.5.

Change versus previous month

Short interest in DigitalOcean has recently increased by 2.30%, indicating that investor sentiment is decreasing.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

DigitalOcean does not currently pay a dividend.

Dividend Growth

DigitalOcean does not have a long track record of dividend growth.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

12.97% of the float of DigitalOcean has been sold short.

Short Interest Ratio / Days to Cover

DigitalOcean has a short interest ratio ("days to cover") of 5.5.

Change versus previous month

Short interest in DigitalOcean has recently increased by 2.30%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 1.8 / 5
• News Sentiment: 0.25

News Sentiment

DigitalOcean has a news sentiment score of 0.25. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.61 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 7 news articles for DigitalOcean this week, compared to 7 articles on an average week.

Search Interest

17 people have searched for DOCN on MarketBeat in the last 30 days. This is an increase of 21% compared to the previous 30 days.

MarketBeat Follows

Only 6 people have added DigitalOcean to their MarketBeat watchlist in the last 30 days. This is a decrease of -14% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, DigitalOcean insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $189,074.00 in company stock.

Percentage Held by Insiders

Only 0.96% of the stock of DigitalOcean is held by insiders.

Percentage Held by Institutions

49.77% of the stock of DigitalOcean is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

DOCN Stock Analysis - Frequently Asked Questions

How have DOCN shares performed this year?

DigitalOcean's stock was trading at $34.07 on January 1st, 2025. Since then, DOCN shares have decreased by 14.3% and is now trading at $29.19.

How were DigitalOcean's earnings last quarter?

DigitalOcean Holdings, Inc. (NYSE:DOCN) released its earnings results on Tuesday, May, 6th. The company reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.11. DigitalOcean's revenue for the quarter was up 14.1% on a year-over-year basis.
Read the conference call transcript.

When did DigitalOcean IPO?

DigitalOcean (DOCN) raised $751 million in an initial public offering on Wednesday, March 24th 2021. The company issued 16,500,000 shares at a price of $44.00-$47.00 per share. Morgan Stanley, Goldman Sachs, J.P. Morgan, BofA Securities, Barclays, Keybanc Capital Markets, Canaccord Genuity, JMP Securities and Stifel served as the underwriters for the IPO.

How do I buy shares of DigitalOcean?

Shares of DOCN stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of DigitalOcean own?

Based on aggregate information from My MarketBeat watchlists, some other companies that DigitalOcean investors own include Humana (HUM), American Water Works (AWK), Voyager Therapeutics (VYGR), Waste Connections (WCN), The RMR Group (RMR), DiamondRock Hospitality (DRH) and iShares Micro-Cap ETF (IWC).

Company Calendar

• Last Earnings: 5/06/2025
• Today: 7/03/2025
• Next Earnings (Estimated): 8/06/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Computer and Technology
• Industry: INTERNET SOFTWARE
• Sub-Industry: Computer Software
• Current Symbol: NYSE:DOCN
• Previous Symbol: NASDAQ:DOCN
• CIK: 1582961
• Web: www.digitalocean.com
• Phone: 646-827-4366
• Fax: N/A
• Employees: 1,200
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $39.83
• High Stock Price Target: $55.00
• Low Stock Price Target: $31.00
• Potential Upside/Downside: +36.5%
• Consensus Rating: Hold
• Rating Score (0-4): 2.38
• Research Coverage: 13 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.11
• Trailing P/E Ratio: 26.30
• Forward P/E Ratio: 28.90
• P/E Growth: 2.05
• Net Income: $84.49 million
• Net Margins: 13.46%
• Pretax Margin: 15.48%
• Return on Equity: -60.69%
• Return on Assets: 8.41%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 2.42
• Quick Ratio: 2.42

Sales & Book Value

• Annual Sales: $780.61 million
• Price / Sales: 3.40
• Cash Flow: $2.80 per share
• Price / Cash Flow: 10.43
• Book Value: ($2.20) per share
• Price / Book: -13.27

Miscellaneous

• Outstanding Shares: 91,030,000
• Free Float: 90,160,000
• Market Cap: $2.66 billion
• Optionable: Optionable
• Beta: 1.76