
DigitalOcean Holdings (DOCN) Stock Forecast & Price Target
DigitalOcean Holdings (DOCN) Analyst Ratings
Bulls say
DigitalOcean Holdings Inc. has demonstrated positive financial momentum, highlighted by a 17% year-over-year growth in the Scaler+ customer cohort, which contributed 22% to total revenue. The company’s annual recurring revenue (ARR) from this cohort surged by 37% year-over-year, underscoring the effectiveness of recent product launches and countering concerns regarding the retention of high-spend customers. Furthermore, DigitalOcean reported a strong net dollar retention rate of 99% in the fourth quarter, alongside a revenue increase of 13% year-over-year to $204.9 million, exceeding consensus estimates and showcasing the company's solid financial performance.
Bears say
DigitalOcean Holdings Inc. is facing a negative outlook primarily due to the decline in low-spend customer revenue, which decreased by 3% in 4Q24, following a 4% decline in the previous quarter. The company's revised non-GAAP EPS estimates indicate a downward trend, with reductions for both 2025 and 2026, which may adversely impact investor confidence and valuation multiples if quarterly results fall short of expectations. Additionally, macroeconomic challenges affecting the small and medium-sized business sector, where DigitalOcean is heavily concentrated, along with potential declines in key metrics such as ARPU and Net Dollar Retention Rates, further contribute to an uncertain financial future for the company.
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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