DigitalOcean (DOCN) Stock Price, News & Analysis

Company Overview

DigitalOcean Holdings, Inc. is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams. The company was co-founded by Ben Uretsky, Moisey Uretsky, Mitch Wainer and Jeff Carr, who combined their experience in web hosting and software development to build a streamlined cloud platform. In July 2021, DigitalOcean appointed Yancey Spruill as Chief Executive Officer, bringing extensive experience in managing technology and financial operations at various cloud and software companies.

DigitalOcean serves customers across North America, Europe, Asia-Pacific and other regions through a global network of data centers located in key markets such as New York, San Francisco, London, Amsterdam, Singapore and Bangalore. Its platform is particularly popular among developers, independent software vendors and small enterprises that require predictable pricing, easy-to-use interfaces and a strong community of tutorials and documentation. By focusing on customer support and a developer-centric approach, the company aims to differentiate itself from larger hyperscale cloud providers while continuing to expand its product portfolio and geographic reach.

Key Stats

• Today's Range: $37.28 to $39.25
• 50-Day Range: $25.76 to $38.65
• 52-Week Range: $25.45 to $47.02
• Volume: 2.22 million shs
• Average Volume: 2.78 million shs
• Market Capitalization: $3.41 billion
• P/E Ratio: 28.78
• Dividend Yield: N/A
• Price Target: $41.45
• Consensus Rating: Hold

DigitalOcean Stock Analysis - MarketRank™

DigitalOcean scored higher than 36% of companies evaluated by MarketBeat, and ranked 510th out of 663 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: 2.9 / 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.

Upside Potential

DigitalOcean has a consensus price target of $41.45, representing about 10.8% upside from its current price of $37.42.

Amount of Analyst Coverage

DigitalOcean has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 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 28.78, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 233.10.

Price to Earnings Ratio vs. Sector

The P/E ratio of DigitalOcean is 28.78, 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 487.81.

Price to Earnings Growth Ratio

DigitalOcean has a PEG Ratio of 2.12. 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

16.35% 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 4.1.

Change versus previous month

Short interest in DigitalOcean has recently increased by 7.25%, indicating that investor sentiment is decreasing significantly.

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

16.35% 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 4.1.

Change versus previous month

Short interest in DigitalOcean has recently increased by 7.25%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.3 / 5
• News Sentiment: 0.19

News Sentiment

DigitalOcean has a news sentiment score of 0.19. 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 0.60 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 12 news articles for DigitalOcean this week, compared to 8 articles on an average week.

Search Interest

31 people have searched for DOCN on MarketBeat in the last 30 days. This is an increase of 41% compared to the previous 30 days.

MarketBeat Follows

Only 8 people have added DigitalOcean to their MarketBeat watchlist in the last 30 days. This is a decrease of -60% 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 $414,629.00 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 at the beginning of the year. Since then, DOCN shares have increased by 9.8% and is now trading at $37.4170.

How were DigitalOcean's earnings last quarter?

DigitalOcean Holdings, Inc. (NYSE:DOCN) released its earnings results on Tuesday, August, 5th. The company reported $0.59 earnings per share for the quarter, beating analysts' consensus estimates of $0.47 by $0.12. DigitalOcean's revenue was up 13.6% 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 (IPO) 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: 8/05/2025
• Today: 10/05/2025
• Next Earnings (Estimated): 11/03/2025
• 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: 1,210
• Year Founded: 2012

Price Target and Rating

• Average Price Target for DigitalOcean: $41.45
• High Price Target: $55.00
• Low Price Target: $31.00
• Potential Upside/Downside: +10.8%
• Consensus Rating: Hold
• Rating Score (0-4): 2.38
• Research Coverage: 13 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.30
• Trailing P/E Ratio: 28.78
• Forward P/E Ratio: 37.05
• P/E Growth: 2.12
• Net Income: $84.49 million
• Net Margins: 15.18%
• Pretax Margin: 17.11%
• Return on Equity: -73.19%
• Return on Assets: 8.98%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 2.27
• Quick Ratio: 2.27

Sales & Book Value

• Annual Sales: $780.61 million
• Price / Sales: 4.36
• Cash Flow: $2.69 per share
• Price / Cash Flow: 13.91
• Book Value: ($2.20) per share
• Price / Book: -17.01

Miscellaneous

• Outstanding Shares: 91,040,000
• Free Float: 90,163,000
• Market Cap: $3.41 billion
• Optionable: Optionable
• Beta: 1.76