DigitalOcean (DOCN 0.17%) has been in fine form on the stock market in 2025, and it looks like the cloud computing provider's bull run is here to stay following the release of its latest quarterly results that sent its shares soaring.
DigitalOcean (DOCN 0.17%) has established itself as a simpler alternative to megacloud computing platforms such as Amazon Web Services (AWS) and Microsoft Azure. For individual developers and small businesses without vast IT budgets or the willingness to scale the steep learning curves associated with AWS, DigitalOcean is an appealing option.
DigitalOcean (DOCN -5.83%) is a cloud stock that has long frustrated investors. The company developed an ingenious way to target small and medium-sized businesses that did not allow Amazon and Microsoft to compete directly.
Shares of cloud computing platform DigitalOcean (DOCN -0.70%) were up 8% this week at 10:30 a.m. ET, according to data provided by S&P Global Market Intelligence.
The cloud computing industry is dominated by trillion-dollar giants like Amazon, Microsoft, and Alphabet. Those companies also took the lead in the fast-growing market for artificial intelligence (AI) cloud services, renting state-of-the-art data center infrastructure to businesses who use it to develop and deploy AI software.
DigitalOcean Holdings, Inc. (NYSE:DOCN ) Q4 2024 Earnings Conference Call February 25, 2025 8:00 AM ET Company Participants Melanie Strate - Head, Investor Relations Paddy Srinivasan - Chief Executive Officer Matt Steinfort - Chief Financial Officer Conference Call Participants Josh Baer - Morgan Stanley Gabriela Borges - Goldman Sachs Mike Cikos - Needham Patrick Walravens - JMP Securities Mark Zhang - Citigroup Raimo Lenschow - Barclays Operator Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today.
DigitalOcean (DOCN 13.40%) stock surged more than 20% at the open Tuesday morning after the company delivered fourth-quarter results that beat analysts' forecasts. It remained up by 12.6% as of 10:50 a.m.
DigitalOcean Holdings, Inc. (DOCN) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.44 per share a year ago.
DigitalOcean (DOCN) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
DigitalOcean (DOCN -0.26%) generates excellent growth in cash flow, but that does not make it an undervalued investment by itself.