
DigitalOcean Holdings (DOCN) Stock Forecast & Price Target
DigitalOcean Holdings (DOCN) Analyst Ratings
Bulls say
DigitalOcean Holdings Inc. has demonstrated strong performance indicators, including a year-over-year revenue growth of 13% reported at $204.9 million, which exceeded consensus estimates. The company achieved a remarkable net dollar retention rate of 99% in 4Q24, reflecting effective customer engagement and retention strategies, alongside a significant 37% increase in annual recurring revenue from its Scaler+ cohort. Additionally, the Scaler+ segment's growth, contributing 22% to total revenue and marked customer growth of 17%, indicates robust demand and success of recent product initiatives, further supporting a positive outlook for the company's financial stability and growth prospects.
Bears say
DigitalOcean Holdings Inc. is facing a negative outlook due to declines in low-spend customer revenue, which dropped by 3% in Q4 2024 following a 4% decline in Q3 2024, indicative of potential weaknesses in customer retention and overall market demand. The company's lowered non-GAAP EPS estimates for 2025 and 2026 suggest a slowdown in growth expectations, with revised figures falling below consensus estimates, reflecting concerns about the long-term sustainability of revenue growth. Additionally, the impact of macroeconomic softness on its primary small and medium-sized business segment, along with potential deterioration in key investor metrics, could lead to a contraction in valuation multiples, further weighing on investor sentiment.
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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