
DigitalOcean Holdings (DOCN) Stock Forecast & Price Target
DigitalOcean Holdings (DOCN) Analyst Ratings
Bulls say
DigitalOcean Holdings Inc. demonstrated strong financial performance, highlighted by a 17% year-over-year growth in the Scaler+ customer cohort, which now contributes 22% to the company’s total revenue, indicating effective customer engagement and monetization strategies. The company reported a remarkable net dollar retention rate of 99%, reflecting its ability to retain and expand revenue from existing customers, thereby alleviating concerns regarding customer migration to larger competitors. Additionally, DigitalOcean's guidance for fiscal year revenue of $870M-$890M, alongside an annual recurring revenue growth (ARR) of 12%, positions the company favorably within the cloud computing sector, supporting a robust growth trajectory.
Bears say
DigitalOcean Holdings Inc. faces a negative outlook due to a consistent decline in revenue from low-spend customers, experiencing a 3% drop in the fourth quarter of 2024 following a 4% decrease in the third quarter of the same year. Additionally, the downward revisions in non-GAAP EPS estimates for 2025 and 2026, along with potential threats to key investor metrics, raise concerns about the company’s growth sustainability in a challenging macroeconomic environment, particularly impacting their small and medium-sized business customer base. Further compounding these challenges, while adjusted free cash flow exceeded consensus expectations, it nonetheless fell short of previous estimates, indicating potential underlying weaknesses in financial performance.
This aggregate rating is based on analysts' research of DigitalOcean Holdings and is not a guaranteed prediction by Public.com or investment advice.
DigitalOcean Holdings (DOCN) Analyst Forecast & Price Prediction
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