Bank of America Issues Positive Forecast for DigitalOcean (NYSE:DOCN) Stock Price

DigitalOcean (NYSE:DOCN) had its price target hoisted by Bank of America from $60.00 to $72.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm currently has a buy rating on the stock.

DOCN has been the subject of several other research reports. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 29th. Oppenheimer initiated coverage on shares of DigitalOcean in a report on Monday, November 10th. They set an “outperform” rating and a $60.00 price target on the stock. Barclays increased their price objective on shares of DigitalOcean from $49.00 to $63.00 and gave the company an “overweight” rating in a research note on Monday, January 12th. UBS Group boosted their target price on DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a research note on Thursday, November 6th. Finally, Cantor Fitzgerald set a $47.00 price target on DigitalOcean and gave the company a “neutral” rating in a research report on Thursday, November 6th. Seven investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, DigitalOcean currently has an average rating of “Moderate Buy” and an average target price of $50.50.

DigitalOcean Stock Performance

Shares of DOCN opened at $60.37 on Tuesday. The firm has a market capitalization 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 has a 52 week low of $25.45 and a 52 week high of $64.09. The stock has a 50 day moving average price of $49.25 and a two-hundred day moving average price of $40.52.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Wednesday, November 5th. The company reported $0.54 earnings per share for the quarter, beating analysts’ consensus estimates of $0.31 by $0.23. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The company had revenue of $229.63 million for the quarter, compared to analyst estimates of $226.55 million. During the same quarter last year, the company earned $0.52 earnings per share. The company’s revenue for the quarter 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. On average, equities analysts forecast that DigitalOcean will post 1.01 earnings per share for the current year.

Institutional Investors Weigh In On DigitalOcean

Several large investors have recently added to or reduced their stakes in the company. Allworth Financial LP lifted its holdings in DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after purchasing an additional 255 shares during the last quarter. CWM LLC raised its position in shares of DigitalOcean by 1.3% in the fourth quarter. CWM LLC now owns 20,971 shares of the company’s stock valued at $1,009,000 after purchasing an additional 270 shares during the period. GAMMA Investing LLC lifted its stake in shares of DigitalOcean by 33.8% during the 4th quarter. GAMMA Investing LLC now owns 1,581 shares of the company’s stock valued at $76,000 after buying an additional 399 shares in the last quarter. Advisors Asset Management Inc. lifted its stake in shares of DigitalOcean by 18.0% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,630 shares of the company’s stock valued at $75,000 after buying an additional 401 shares in the last quarter. Finally, Man Group plc boosted its holdings in DigitalOcean by 0.5% in the 2nd quarter. Man Group plc now owns 82,485 shares of the company’s stock worth $2,356,000 after buying an additional 420 shares during the period. Hedge funds and other institutional investors own 49.77% of the company’s stock.

Key Headlines Impacting DigitalOcean

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

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.