
DigitalOcean Holdings (DOCN) Stock Forecast & Price Target
DigitalOcean Holdings (DOCN) Analyst Ratings
Bulls say
DigitalOcean Holdings Inc achieved a notable milestone with a net dollar retention (NDR) rate of 100% in 1QCY25, marking a significant recovery since 2QCY23. The company reported an annual recurring revenue (ARR) growth of 14% year-over-year, reaching $843 million, which includes $23 million in net-new ARR, exceeding market expectations. Additionally, DigitalOcean's revenue of $210.7 million, which also grew by 14% year-over-year, surpassed management’s guidance, indicating strong operational performance.
Bears say
DigitalOcean Holdings Inc. has faced disappointing metrics in its Net New Annual Recurring Revenue (ARR), which remains essentially unchanged from the previous year and has significantly declined on a quarter-over-quarter basis. The potential deterioration in critical investor metrics such as Average Revenue Per User (ARPU) Growth, ARR Growth, New Logo Customer Growth, and Net Dollar Retention Rates poses a risk to investor sentiment, likely leading to a contraction in valuation multiples. Furthermore, any quarterly results or guidance that fall below investor expectations could further exacerbate 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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