
DigitalOcean Holdings (DOCN) Stock Forecast & Price Target
DigitalOcean Holdings (DOCN) Analyst Ratings
Bulls say
DigitalOcean Holdings Inc. has demonstrated strong growth metrics, highlighting a 17% year-over-year customer growth within its Scaler+ cohort, which now constitutes 22% of total revenue and achieved a significant 37% increase in Annual Recurring Revenue (ARR). The company recorded a 99% net dollar retention rate in the fourth quarter of 2024, an improvement from previous quarters, signaling its effectiveness in retaining and expanding revenue from existing customers. Furthermore, DigitalOcean has provided a revenue guidance of $870M-$890M for the upcoming year, reflecting a robust 13% year-over-year growth, underscoring its strong positioning in the cloud computing market and solid financial performance.
Bears say
DigitalOcean Holdings Inc. is experiencing a concerning trend, with low-spend customer revenue declining by 3% in the fourth quarter of 2024, following a 4% drop in the previous quarter. In addition, the company revised its non-GAAP EPS estimates downward for both 2025 and 2026, forecasting only 13% and 14% year-over-year revenue growth, respectively, which may not meet investor expectations and could lead to a contraction in valuation multiples. Factors such as deterioration in key investor metrics and macroeconomic challenges impacting the small and medium-sized business sector, where DigitalOcean has significant exposure, further contribute to the negative outlook for the company's stock.
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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