DigitalOcean Holdings (DOCN) Stock Overview
Through its subsidiaries, operates an agentic inference cloud platform in North America, Europe, Asia, and internationally. More details
| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
Rewards
Risk Analysis
DOCN Community Fair Values
Create NarrativeSee what 82 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
Top Community Narratives
US$50
FV
135.0% overvalued intrinsic discount18.62%
Revenue growth p.a.
3.9k
users have viewed this narrative3users have liked this narrative
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DigitalOcean Holdings, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$117.50 |
| 52 Week High | US$187.50 |
| 52 Week Low | US$25.56 |
| Beta | 1.57 |
| 1 Month Change | -18.73% |
| 3 Month Change | 14.28% |
| 1 Year Change | 356.49% |
| 3 Year Change | 234.66% |
| 5 Year Change | 117.59% |
| Change since IPO | 176.47% |
Recent News & Updates
Seeking Alpha • Jul 27
DigitalOcean: AI Revenue Is Pouring In, But Cash Flow Isn't Keeping Up - Strong Sell
Summary While DigitalOcean (DOCN) has shown strong revenue growth in recent quarters, I believe that this fact is overshadowing the reality that the stock is overvalued. DOCN is focusing heavily on AI spending, but this could ultimately create pressure on margins. Peers of DOCN can often be found at more attractive valuations. Currently, the stock is priced for a level of perfection that I believe should concern investors. Read the full article on Seeking Alpha
Narrative Update • Jul 21
DOCN: AI Inference Demand And Note Buyback Will Drive Bullish Repricing
The analyst fair value estimate for DigitalOcean Holdings has been lifted from $86.00 to $200.00, reflecting updated assumptions on growth, margins and P/E multiples, along with recent Street research that highlights mixed but generally constructive views on price targets, balance sheet flexibility from the convert buyback and expectations around longer term cloud and AI demand. Analyst Commentary Recent Street research around DigitalOcean Holdings points to a generally constructive tone, with several bullish analysts adjusting price targets higher and highlighting company specific drivers such as cloud demand, AI related workloads and capital structure actions.Recent updates
Seeking Alpha • Jul 27
DigitalOcean: AI Revenue Is Pouring In, But Cash Flow Isn't Keeping Up - Strong Sell
Summary While DigitalOcean (DOCN) has shown strong revenue growth in recent quarters, I believe that this fact is overshadowing the reality that the stock is overvalued. DOCN is focusing heavily on AI spending, but this could ultimately create pressure on margins. Peers of DOCN can often be found at more attractive valuations. Currently, the stock is priced for a level of perfection that I believe should concern investors. Read the full article on Seeking AlphaNarrative Update • Jul 21
DOCN: AI Inference Demand And Note Buyback Will Drive Bullish Repricing
The analyst fair value estimate for DigitalOcean Holdings has been lifted from $86.00 to $200.00, reflecting updated assumptions on growth, margins and P/E multiples, along with recent Street research that highlights mixed but generally constructive views on price targets, balance sheet flexibility from the convert buyback and expectations around longer term cloud and AI demand. Analyst Commentary Recent Street research around DigitalOcean Holdings points to a generally constructive tone, with several bullish analysts adjusting price targets higher and highlighting company specific drivers such as cloud demand, AI related workloads and capital structure actions.
Narrative Update • Jul 07
DOCN: AI Workloads And New Capacity Will Drive Post 2026 Margin Upside
DigitalOcean Holdings' analyst price target has effectively doubled to about $179 from roughly $95 as analysts factor in higher projected revenue growth and a richer future P/E multiple, supported by recent research pointing to continued demand for AI workloads and longer term margin expansion. Analyst Commentary Recent research on DigitalOcean Holdings points to a strongly constructive tone from several firms, with bullish analysts lifting price targets and highlighting what they see as a favorable setup around AI demand and margin potential.
Narrative Update • Jun 23
DOCN: Heavy 2026 AI Capacity Spending Will Likely Delay Margin Improvement
DigitalOcean Holdings' analyst price target has been revised upward to $200, with analysts pointing to increased 2026 investment plans to support future cloud and AI workload growth, while acknowledging a slightly higher discount rate and modestly adjusted margin assumptions. Analyst Commentary Recent Street research around DigitalOcean Holdings points to a more complex picture behind the higher US$200 price target, with analysts weighing the company’s 2026 investment plans against execution risk, future growth expectations for cloud and AI workloads, and the timing of any potential margin expansion.Analysis Article • Jun 16
DigitalOcean (DOCN) Stock After New AI-Focused Hires And AI-Native Cloud Launch Is Valuation Stretched Or Justified
DigitalOcean Holdings (DOCN) is back in focus after the company appointed three senior executives with deep roots in cloud and AI infrastructure, shortly after rolling out its AI-Native Cloud platform. See our latest analysis for DigitalOcean Holdings. The share price has moved sharply in recent months, with a 30-day share price return of 17.06% and a 90-day share price return of 133.65%. The 1-year total shareholder return is also very large, suggesting momentum has strengthened around the...Narrative Update • Jun 03
DOCN: Heavy AI Infrastructure Spending Will Likely Restrain Shareholder Returns
Analysts have nudged the updated fair value estimate for DigitalOcean Holdings to about $144 per share from roughly $143, citing a slightly lower discount rate, modestly higher profit margin assumptions, and continued support from recent price target increases across the Street focused on AI related growth investment. Analyst Commentary Across recent research, the tone around DigitalOcean has generally leaned constructive, with several firms lifting price targets and one initiating coverage with an optimistic stance on the company’s cloud and AI workload exposure.Narrative Update • May 19
DOCN: AI Inference Capacity And Profit Investment Will Likely Remain In Tense Balance
Analysts have lifted the fair value estimate for DigitalOcean Holdings from about $57 to roughly $143, reflecting a wave of higher price targets tied to expectations for stronger AI driven revenue growth, updated margin forecasts and a higher assumed future P/E multiple. Analyst Commentary Recent Street research on DigitalOcean shows a cluster of higher price targets tied to AI related opportunities, capacity additions and updated long term revenue and margin frameworks.Analysis Article • May 12
DigitalOcean Holdings' (NYSE:DOCN) Promising Earnings May Rest On Soft Foundations
DigitalOcean Holdings, Inc.'s ( NYSE:DOCN ) stock was strong after they recently reported robust earnings. However, we...Narrative Update • Apr 30
DOCN: AI Inference And New Capacity Will Shape Balanced 2026 Outlook
DigitalOcean Holdings' analyst fair value estimate has been updated from $84.00 to $94.50 as analysts incorporate a series of higher price targets tied to AI inference opportunities, new capacity coming online, and revenue outlooks that they view as better aligned with recent guidance and customer trends. Analyst Commentary Recent Street research on DigitalOcean points to a generally constructive tone, with multiple firms revising price targets and updating models around AI inference, new data center capacity and multi year revenue guidance.Narrative Update • Apr 16
DOCN: AI Inference Buildout And 2026 Guidance Will Temper Future Upside
Analysts have lifted the fair value estimate for DigitalOcean Holdings to $84 from about $59.58, reflecting higher assumed revenue growth and profit margins, supported by a wave of recent price target increases tied to AI inference opportunities and stronger long term guidance. Analyst Commentary Recent research shows a clear skew toward higher price targets for DigitalOcean, with many bullish analysts tying their revisions to AI inference opportunities, longer term guidance and updated capacity plans.Narrative Update • Apr 02
DOCN: AI Capacity Buildout Will Likely Outpace Profits And Demand Utilization
DigitalOcean Holdings' fair value estimate remains at $57.00, while analysts have raised price targets in recent research, citing stronger revenue outlooks, improving customer metrics, and growing interest in the company's AI and inference related offerings. Analyst Commentary Recent research coverage centers on DigitalOcean's expanding AI and inference offerings, new capacity coming online, and updated long term revenue and profit targets.Narrative Update • Mar 19
DOCN: AI Capacity Hype Will Likely Outrun Execution And Utilization
The analyst fair value estimate for DigitalOcean has increased from $32.00 to $57.00. This reflects higher Street price targets tied to stronger AI related growth expectations, updated long term revenue outlooks, and a higher assumed future P/E multiple, even as some firms maintain more cautious ratings.Narrative Update • Mar 05
DOCN: AI Inference Workloads And New Capacity Will Drive Bullish Repricing
The analyst fair value estimate for DigitalOcean has increased from $65.00 to $86.00, reflecting updated views that emphasize stronger revenue growth and profitability potential related to AI inference workloads and new capacity coming online, as highlighted in recent Street research. Analyst Commentary Recent Street research around DigitalOcean highlights a clear split between bullish analysts raising targets on the back of AI related momentum and more cautious voices that prefer to wait for additional proof points.Narrative Update • Feb 19
DOCN: Elevated AI Optimism And 2026 Software Setup Will Restrain Future Returns
Analysts have raised their implied fair value estimate for DigitalOcean to about $59.58, up from $56.17. This change reflects updated views on the company’s growth profile, margin outlook, and a higher assumed future P/E multiple following recent price target increases and upgrades from several firms.Analysis Article • Feb 14
DigitalOcean Holdings, Inc. (NYSE:DOCN) Stock Rockets 29% As Investors Are Less Pessimistic Than Expected
DigitalOcean Holdings, Inc. ( NYSE:DOCN ) shares have continued their recent momentum with a 29% gain in the last month...Narrative Update • Feb 04
DOCN: AI Partnerships And 2026 Software Setup Will Shape A Measured Outlook
Analysts have raised their fair value target for DigitalOcean to about US$56.17 from US$54, reflecting updated views on discount rates, long term revenue growth, profit margins and future P/E multiples in light of recent price target increases from major firms. Analyst Commentary Recent research updates on DigitalOcean reflect a mix of optimism on the setup for software names in 2026 and ongoing questions about execution and valuation risk.Narrative Update • Jan 21
DOCN: 2026 Software Rebound And AI Deals Will Drive Bullish Repricing
Analysts have raised their price target on DigitalOcean Holdings by US$14 to US$63, citing stable macro and IT spending, relatively low software valuations, and the stock's current out-of-favor status as key elements of their rationale. Analyst Commentary Recent Street research on DigitalOcean Holdings highlights a more constructive tone from bullish analysts, who are pointing to a combination of stock-specific and sector-wide factors as the basis for their updated views.Narrative Update • Jan 07
DOCN: Takeover Rumors And AI Partnerships Will Shape A Measured Outlook
Analysts now estimate fair value for DigitalOcean Holdings at US$54.00 per share, compared with US$53.33 previously. This reflects updated assumptions around revenue growth, profit margins and future P/E levels in their models.Narrative Update • Dec 23
DOCN: AI Partnership And Takeover Buzz Will Drive Bullish Rerating
Analysts have raised their fair value estimate for DigitalOcean Holdings from 55 dollars to 65 dollars, citing expectations of faster revenue growth and a richer future earnings multiple, despite modeling lower long term profit margins and a slightly reduced discount rate. What's in the News Speculation about a potential takeover surfaced after the Betaville blog flagged DigitalOcean as a possible bid target, drawing trader attention to the stock (Betaville via The Fly).Narrative Update • Dec 09
DOCN: Takeover Chatter And AI Partnerships Will Shape Balanced Outlook
Analysts have nudged their price target for DigitalOcean Holdings slightly higher to approximately $53.33 per share from roughly $53.33 per share, citing marginal improvements in the company’s discount rate assumptions and stable expectations for revenue growth, profit margins, and future valuation multiples. What's in the News Betaville blog highlighted market chatter about a potential takeover bid for DigitalOcean, drawing investor attention to the stock (Betaville via The Fly).Narrative Update • Nov 25
DOCN: Takeover Rumors And AI Partnership Will Drive Share Momentum
Analysts have raised their price target for DigitalOcean Holdings from $44.45 to $53.33. They cite updated revenue growth forecasts and a reduced discount rate as key drivers of their more optimistic outlook.Analysis Article • Nov 08
DigitalOcean Holdings, Inc.'s (NYSE:DOCN) 31% Share Price Surge Not Quite Adding Up
Despite an already strong run, DigitalOcean Holdings, Inc. ( NYSE:DOCN ) shares have been powering on, with a gain of...Narrative Update • Nov 05
DOCN: Takeover Speculation And AI Expansion Will Shape Future Performance
Analysts have raised their price target for DigitalOcean Holdings from $41.60 to $44.45. This update reflects revised projections that consider stronger expected revenue growth, even though profit margin assumptions have been slightly reduced.Analysis Article • Aug 31
What DigitalOcean Holdings, Inc.'s (NYSE:DOCN) 27% Share Price Gain Is Not Telling You
DigitalOcean Holdings, Inc. ( NYSE:DOCN ) shares have had a really impressive month, gaining 27% after a shaky period...Narrative Update • Aug 07
Digital Transformation And AI Adoption Will Spur Expansion Despite Risks
With DigitalOcean Holdings’ net profit margin and revenue growth forecasts both largely unchanged, analysts have maintained their consensus price target at $41.18. What's in the News Issued Q3 and full-year 2025 revenue guidance, projecting $226–$227 million for Q3 and $888–$892 million for the year.Shareholder Returns
| DOCN | US IT | US Market | |
|---|---|---|---|
| 7D | -4.9% | 5.9% | 1.0% |
| 1Y | 356.5% | -1.0% | 19.1% |
Return vs Industry: DOCN exceeded the US IT industry which returned -1% over the past year.
Return vs Market: DOCN exceeded the US Market which returned 19.1% over the past year.
Price Volatility
| DOCN volatility | |
|---|---|
| DOCN Average Weekly Movement | 16.4% |
| IT Industry Average Movement | 11.6% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.3% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: DOCN's share price has been volatile over the past 3 months compared to the US market.
Volatility Over Time: DOCN's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2012 | 1,462 | Paddy Srinivasan | www.digitalocean.com |
DigitalOcean Holdings, Inc., through its subsidiaries, operates an agentic inference cloud platform in North America, Europe, Asia, and internationally. The company provides AI and Digital Native Enterprises build, run, and scale intelligent applications for growing technology companies. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute, storage, and networking products, including cloud firewalls, managed load balancers, NAT gateways, and virtual private cloud software, as well as IP address management and domain name system management.
DigitalOcean Holdings, Inc. Fundamentals Summary
| DOCN fundamental statistics | |
|---|---|
| Market cap | US$14.06b |
| Earnings (TTM) | US$236.83m |
| Revenue (TTM) | US$948.63m |
58.0x
P/E Ratio14.5x
P/S RatioIs DOCN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DOCN income statement (TTM) | |
|---|---|
| Revenue | US$948.63m |
| Cost of Revenue | US$393.77m |
| Gross Profit | US$554.86m |
| Other Expenses | US$318.03m |
| Earnings | US$236.83m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
Aug 04, 2026
| Earnings per share (EPS) | 2.03 |
| Gross Margin | 58.49% |
| Net Profit Margin | 24.97% |
| Debt/Equity Ratio | 103.6% |
How did DOCN perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/07/31 04:18 |
| End of Day Share Price | 2026/07/31 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
DigitalOcean Holdings, Inc. is covered by 20 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Robert Oliver | Baird |
| Raimo Lenschow | Barclays |
| Wamsi Mohan | BofA Global Research |