DigitalOcean (NYSE:DOCN) Shares Gap Up After Analyst Upgrade

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares gapped up before the market opened on Tuesday after Bank of America raised their price target on the stock from $60.00 to $72.00. The stock had previously closed at $58.94, but opened at $63.09. Bank of America currently has a buy rating on the stock. DigitalOcean shares last traded at $62.4420, with a volume of 1,731,511 shares traded.

Other analysts have also issued research reports about the company. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Piper Sandler boosted their price target on shares of DigitalOcean from $47.00 to $50.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Wall Street Zen downgraded shares of DigitalOcean from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. UBS Group increased their price target on shares of DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a report on Thursday, November 6th. Finally, Canaccord Genuity Group boosted their target price on shares of DigitalOcean from $55.00 to $60.00 and gave the stock a “buy” rating in a research report on Thursday, November 6th. Seven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, DigitalOcean presently has a consensus rating of “Moderate Buy” and a consensus price target of $50.50.

DigitalOcean News Roundup

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Bank of America raised its price target to $72 and maintained a “buy” rating, implying meaningful upside from current levels and giving institutional validation to the rally. Article Title
• Positive Sentiment: Investors cheered DigitalOcean’s new “Clawdbot” AI agent — coverage frames it as a product catalyst that could expand DOCN’s addressable AI cloud market and spur customer adoption. Article Title
• Positive Sentiment: Analysis of Monday’s roughly 10% spike highlights heavy trading volume and the convergence of product news + analyst support as drivers — momentum traders amplified the move. Article Title
• Positive Sentiment: Yahoo Finance notes DOCN’s evolving role in AI cloud and a new CPTO hire as factors boosting investor interest and forward-looking valuation narratives. Article Title
• Neutral Sentiment: Zacks flags that while volume and price jumped, recent earnings-estimate revision trends may not guarantee sustained upside — a note of caution for short-term continuation. Article Title
• Neutral Sentiment: Additional reporting pieces summarize the same themes — AI product momentum, analyst upgrades and heavy trading — useful for context but largely repetitive of the catalysts above. Article Title Article Title

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Penserra Capital Management LLC acquired a new position in shares of DigitalOcean in the 2nd quarter valued at approximately $6,580,000. Allspring Global Investments Holdings LLC raised its holdings in shares of DigitalOcean by 25.5% in the second quarter. Allspring Global Investments Holdings LLC now owns 215,483 shares of the company’s stock valued at $6,038,000 after purchasing an additional 43,732 shares during the last quarter. Jennison Associates LLC bought a new stake in DigitalOcean during the 2nd quarter worth about $455,000. Cherry Creek Investment Advisors Inc. boosted its position in DigitalOcean by 18.7% during the second quarter. Cherry Creek Investment Advisors Inc. now owns 45,831 shares of the company’s stock valued at $1,309,000 after purchasing an additional 7,228 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in shares of DigitalOcean by 248.2% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 45,302 shares of the company’s stock valued at $1,294,000 after buying an additional 32,290 shares during the last quarter. 49.77% of the stock is currently owned by institutional investors.

DigitalOcean Stock Performance

The business’s 50-day moving average price is $49.25 and its 200 day moving average price is $40.52. The company has a market cap of $5.52 billion, a P/E ratio of 24.34, a P/E/G ratio of 8.46 and a beta of 1.76.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Wednesday, November 5th. The company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.23. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The business had revenue of $229.63 million during the quarter, compared to the consensus estimate of $226.55 million. During the same quarter last year, the firm posted $0.52 EPS. The company’s quarterly revenue was up 15.9% on a year-over-year basis. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS and its FY 2025 guidance at 2.000-2.050 EPS. Equities research analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current year.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.