DigitalOcean (NYSE:DOCN) Issues Q1 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its first quarter 2025 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.410-0.460 for the period, compared to the consensus earnings per share estimate of 0.420. The company issued revenue guidance of $207.0 million-$209.0 million, compared to the consensus revenue estimate of $207.7 million. DigitalOcean also updated its FY 2025 guidance to 1.850-1.950 EPS.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Morgan Stanley raised DigitalOcean from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $40.00 to $41.00 in a research report on Thursday, January 16th. JMP Securities raised their price objective on DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a research report on Monday, January 27th. Canaccord Genuity Group upped their target price on DigitalOcean from $48.00 to $50.00 and gave the company a “buy” rating in a report on Wednesday. Cantor Fitzgerald raised their price target on shares of DigitalOcean from $39.00 to $43.00 and gave the stock a “neutral” rating in a report on Wednesday. Finally, UBS Group boosted their price objective on shares of DigitalOcean from $39.00 to $44.00 and gave the company a “neutral” rating in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, DigitalOcean has an average rating of “Hold” and an average target price of $43.27.

DigitalOcean Stock Performance

Shares of DOCN traded down $0.73 during trading hours on Thursday, hitting $43.21. 1,791,755 shares of the company were exchanged, compared to its average volume of 1,333,421. DigitalOcean has a 52 week low of $26.63 and a 52 week high of $47.02. The company has a market cap of $3.99 billion, a PE ratio of 51.00, a PEG ratio of 3.12 and a beta of 1.81. The firm’s 50 day moving average is $38.88 and its 200-day moving average is $39.14.

Insider Activity at DigitalOcean

In related news, CFO Matt Steinfort sold 12,498 shares of DigitalOcean stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction of $499,920.00. Following the sale, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at $20,699,920. This trade represents a 2.36 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Bratin Saha sold 4,289 shares of the business’s stock in a transaction that occurred on Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total value of $157,835.20. Following the sale, the insider now owns 372,762 shares in the company, valued at approximately $13,717,641.60. This represents a 1.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 20,255 shares of company stock worth $790,163 in the last 90 days. 0.74% of the stock is owned by company insiders.

About DigitalOcean

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).