
DigitalOcean Holdings (DOCN) Stock Forecast & Price Target
DigitalOcean Holdings (DOCN) Analyst Ratings
Bulls say
DigitalOcean Holdings Inc has demonstrated strong growth, with the Scaler+ cohort reporting a 17% year-over-year increase in customer base and contributing 22% to total revenue, indicating successful product engagement and monetization efforts. The company's annual recurring revenue (ARR) from this cohort surged by 37% year-over-year, reflecting robust demand and addressing concerns about customer retention against competitors. Additionally, DigitalOcean achieved a net dollar retention rate of 99% in 4Q24, coupled with a free cash flow of $37 million on revenue of $205 million, showcasing financial resilience and effective operational performance.
Bears say
DigitalOcean Holdings Inc. has experienced a decline in low-spend customer revenue, with a 3% drop in the fourth quarter of 2024, compounding a 4% decline in the previous quarter. Furthermore, the company's downward revisions to its non-GAAP EPS estimates for 2025 and 2026, along with concerns over macroeconomic conditions negatively impacting its small and mid-sized business (SMB) customer base, contribute to a challenging outlook. Additionally, if key investor metrics such as Average Revenue Per User (ARPU) Growth and Annual Recurring Revenue (ARR) Growth continue to deteriorate, this could hinder investor sentiment and put pressure on DigitalOcean's valuation multiple.
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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