
DigitalOcean Holdings (DOCN) Stock Forecast & Price Target
DigitalOcean Holdings (DOCN) Analyst Ratings
Bulls say
DigitalOcean Holdings Inc. has demonstrated strong financial performance, achieving a 100% Net Dollar Retention (NDR) in the first quarter of fiscal year 2025, marking a significant milestone since 2023. The company's Annual Recurring Revenue (ARR) increased by 14% year-over-year to $843 million, contributing $23 million in net new ARR, which indicates robust growth in its subscriber base. Additionally, DigitalOcean's revenue of $210.7 million also rose 14% year-over-year, surpassing management's guidance and reflecting effective financial management and market demand.
Bears say
DigitalOcean Holdings exhibited disappointing performance in key metrics, with Net New ARR remaining essentially unchanged compared to the previous year and showing a significant decline on a quarterly basis. The outlook is further clouded by potential contractions in valuation multiples due to quarterly results or guidance that fall below investor expectations, particularly in critical areas like ARPU Growth, ARR Growth, and New Logo Customer Growth. Additionally, the deterioration of these important investor metrics is likely to negatively impact investor sentiment and contribute to ongoing valuation pressures for the company’s shares.
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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