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DOCN Stock Forecast: DigitalOcean Holdings Inc. Price Predictions for 2025

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$35.53

-1.17 (-3.19%)

DOCN Stock Forecast 2025-2026

$35.53
Current Price
$3.50B
Market Cap
15 Ratings
Buy 8
Hold 6
Sell 1
Wall St Analyst Ratings

Distance to DOCN Price Targets

+54.8%
To High Target of $55.00
+29.5%
To Median Target of $46.00
-12.7%
To Low Target of $31.00

DOCN Price Momentum

-3.7%
1 Week Change
-17.1%
1 Month Change
-6.9%
1 Year Change
+4.3%
Year-to-Date Change
-24.4%
From 52W High of $47.02
+33.4%
From 52W Low of $26.63
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Latest DOCN Stock Price Targets & Analyst Predictions

Based on our analysis of 18 Wall Street analysts, DOCN has a bullish consensus with a median price target of $46.00 (ranging from $31.00 to $55.00). Currently trading at $35.53, the median forecast implies a 29.5% upside. This outlook is supported by 8 Buy, 6 Hold, and 1 Sell ratings.

The most optimistic forecast comes from Patrick Walravens at Citizens Capital Markets, projecting a 54.8% upside. Conversely, the most conservative target is provided by Wamsi Mohan at B of A Securities, suggesting a 12.7% downside.

Please note that analyst price targets are forward-looking estimates subject to substantial market, economic, and company-specific risks. Past performance does not guarantee future results, and actual stock performance may materially differ from these projections. Investors should conduct their own due diligence and consider their investment objectives and risk tolerance before making investment decisions.

DOCN Analyst Ratings

8
Buy
6
Hold
1
Sell

DOCN Price Target Range

Low
$31.00
Average
$46.00
High
$55.00
Current: $35.53

Latest DOCN Stock Forecasts by Analyst

These are the latest 20 analyst ratings and price targets for DOCN.

Date Firm Analyst Rating Change Price Target
Feb 26, 2025 B of A Securities Wamsi Mohan Underperform Maintains $31.00
Feb 26, 2025 JP Morgan Pinjalim Bora Neutral Maintains $45.00
Feb 26, 2025 Needham Mike Cikos Hold Reiterates $0.00
Feb 26, 2025 UBS Jeff Hickey Neutral Maintains $44.00
Feb 26, 2025 Citizens Capital Markets Patrick Walravens Market Outperform Reiterates $55.00
Feb 26, 2025 Cantor Fitzgerald Thomas Blakey Neutral Maintains $43.00
Feb 26, 2025 Canaccord Genuity Kingsley Crane Buy Maintains $50.00
Jan 27, 2025 JMP Securities Patrick Walravens Market Outperform Maintains $55.00
Jan 24, 2025 Citigroup Mark Zhang Buy Initiates $45.00
Jan 16, 2025 Morgan Stanley Overweight Upgrade $0.00
Jan 16, 2025 Cantor Fitzgerald Neutral Initiates $0.00
Dec 18, 2024 Stifel Hold Maintains $0.00
Nov 5, 2024 Needham Mike Cikos Hold Reiterates $0.00
Oct 25, 2024 JP Morgan Pinjalim Bora Neutral Maintains $40.00
Oct 11, 2024 Barclays Raimo Lenschow Overweight Maintains $48.00
Oct 4, 2024 Canaccord Genuity Kingsley Crane Buy Maintains $48.00
Aug 9, 2024 UBS Jeff Hickey Neutral Maintains $34.00
Aug 9, 2024 Barclays Raimo Lenschow Overweight Maintains $38.00
Aug 9, 2024 Stifel Brad Reback Hold Maintains $35.00
Jul 15, 2024 Piper Sandler James Fish Neutral Maintains $34.00

DigitalOcean Holdings Inc. (DOCN) Competitors

The following stocks are similar to DigitalOcean based on their market capitalization and industry sector. These similar stocks potentially provide investors with alternative investment opportunities within the same market segment.

DigitalOcean Holdings Inc. (DOCN) Financial Data

DigitalOcean Holdings Inc. has a market capitalization of $3.50B with a P/E ratio of 41.2x. The company generates $780.61M in trailing twelve-month revenue with a 10.8% profit margin.

Revenue growth is +13.3% quarter-over-quarter, while maintaining an operating margin of +16.7% and return on equity of -41.6%.

Valuation Metrics

Market Cap $3.50B
Enterprise Value $4.65B
P/E Ratio 41.2x
PEG Ratio 19.8x
Price/Sales 4.5x

Growth & Margins

Revenue Growth (YoY) +13.3%
Gross Margin +57.1%
Operating Margin +16.7%
Net Margin +10.8%
EPS Growth +14.6%

Financial Health

Cash/Price Ratio +13.1%
Current Ratio 2.5x
Debt/Equity -8.4x
ROE -41.6%
ROA +4.2%
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DigitalOcean Holdings Inc. logo

DigitalOcean Holdings Inc. (DOCN) Business Model

About DigitalOcean Holdings Inc.

What They Do

Provides cloud infrastructure for developers and businesses.

Business Model

The company generates revenue by offering scalable cloud services such as computing, data storage, and networking through a user-friendly platform. Its primary customer base consists of small-to-medium-sized businesses and individual developers who rely on DigitalOcean's straightforward setup and comprehensive support to efficiently manage their cloud applications.

Additional Information

DigitalOcean's unique selling proposition includes its Droplets, which are quick-to-deploy virtual machines designed to support various server-side applications. The company's focus on simplicity and community engagement differentiates it in the competitive cloud infrastructure market, positioning it as a key player in enabling digital innovation.

Company Information

Sector

Technology

Industry

Software - Infrastructure

Employees

1,210

CEO

Mr. Padmanabhan T. Srinivasan

Country

United States

IPO Year

2021

DigitalOcean Holdings Inc. (DOCN) Latest News & Analysis

DOCN stock latest news image
Quick Summary

SoundHound AI (NASDAQ: SOUN) experienced significant stock price fluctuations over the past year, spiking after Nvidia acquired a small stake, and ended 2024 on a positive trend.

Why It Matters

SoundHound AI's stock volatility reflects investor sentiment influenced by Nvidia's stake, impacting market confidence and potential future performance.

Source: The Motley Fool
Market Sentiment: Negative
DOCN stock latest news image
Quick Summary

DigitalOcean (DOCN) positions itself as a user-friendly alternative to AWS and Azure, targeting individual developers and small businesses with simpler cloud solutions.

Why It Matters

DigitalOcean targets a niche market of individual developers and small businesses, potentially capturing market share from larger competitors, which could drive growth and increase investor confidence.

Source: The Motley Fool
Market Sentiment: Positive
DOCN stock latest news image
Quick Summary

DigitalOcean's stock has performed well in 2025, gaining momentum after strong quarterly results boosted investor confidence.

Why It Matters

DigitalOcean's strong quarterly results and rising stock performance signal robust growth potential, making it an attractive option for investors seeking exposure to the cloud computing sector.

Source: The Motley Fool
Market Sentiment: Positive
DOCN stock latest news image
Quick Summary

DigitalOcean (DOCN) targets small and medium-sized businesses, creating a niche that limits competition from Amazon and Microsoft, despite recent stock frustration.

Why It Matters

DigitalOcean's unique market positioning appeals to a niche segment, potentially yielding growth despite challenges. Investor sentiment may be affected by its performance against larger competitors.

Source: The Motley Fool
Market Sentiment: Positive
DOCN stock latest news image
Quick Summary

Amazon, Microsoft, and Alphabet dominate the cloud computing and AI cloud services markets, providing advanced data center infrastructure for AI software development.

Why It Matters

The dominance of major players in cloud and AI services signals strong growth potential, influencing market valuations and investment strategies in tech sectors.

Source: The Motley Fool
Market Sentiment: Positive
DOCN stock latest news image
Quick Summary

DigitalOcean (DOCN) shares rose 8% this week, as reported by S&P Global Market Intelligence.

Why It Matters

DigitalOcean's 8% share increase signals positive market sentiment, potentially indicating strong performance or investor confidence, which could attract more interest and drive further growth.

Source: The Motley Fool
Market Sentiment: Positive

Frequently Asked Questions About DOCN Stock

What is DigitalOcean Holdings Inc.'s (DOCN) stock forecast for 2025?

Based on our analysis of 18 Wall Street analysts, DigitalOcean Holdings Inc. (DOCN) has a median price target of $46.00. The highest price target is $55.00 and the lowest is $31.00.

Is DOCN stock a good investment in 2025?

According to current analyst ratings, DOCN has 8 Buy ratings, 6 Hold ratings, and 1 Sell ratings. The stock is currently trading at $35.53. Always conduct your own research and consider your investment goals before making investment decisions.

What is the long-term price prediction for DOCN stock?

Wall Street analysts predict DOCN stock could reach $46.00 in the next 12 months. This represents a 29.5% increase from the current price of $35.53. Please note that this is a projection by Wall Street analysts and not a guarantee.

What is DigitalOcean Holdings Inc.'s business model?

The company generates revenue by offering scalable cloud services such as computing, data storage, and networking through a user-friendly platform. Its primary customer base consists of small-to-medium-sized businesses and individual developers who rely on DigitalOcean's straightforward setup and comprehensive support to efficiently manage their cloud applications.

What is the highest forecasted price for DOCN DigitalOcean Holdings Inc.?

The highest price target for DOCN is $55.00 from Patrick Walravens at Citizens Capital Markets, which represents a 54.8% increase from the current price of $35.53.

What is the lowest forecasted price for DOCN DigitalOcean Holdings Inc.?

The lowest price target for DOCN is $31.00 from Wamsi Mohan at B of A Securities, which represents a -12.7% decrease from the current price of $35.53.

What is the overall DOCN consensus from analysts for DigitalOcean Holdings Inc.?

The overall analyst consensus for DOCN is bullish. Out of 18 Wall Street analysts, 8 rate it as Buy, 6 as Hold, and 1 as Sell, with a median price target of $46.00.

How accurate are DOCN stock price projections?

Stock price projections, including those for DigitalOcean Holdings Inc., are based on various factors including financial models, market conditions, and analyst forecasts. While these predictions provide valuable insights, they should be considered alongside your own research and risk tolerance.

Important Disclaimer

The information provided by Ticker Nerd is for educational and informational purposes only. It should not be considered financial or investment advice. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Analyst ratings and price forecasts are sourced from Wall St analysts and other experts. These projections are speculative and do not guarantee future stock performance.

Last updated: March 28, 2025 8:30 AM UTC