DigitalOcean (NYSE:DOCN) Updates Q1 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its first quarter 2025 earnings guidance on Tuesday. The company provided EPS guidance of 0.410-0.460 for the period, compared to the consensus EPS 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.

DigitalOcean Stock Up 7.2 %

Shares of DOCN stock traded up $2.94 during mid-day trading on Wednesday, hitting $43.77. 828,551 shares of the company’s stock were exchanged, compared to its average volume of 1,279,072. DigitalOcean has a fifty-two week low of $26.63 and a fifty-two week high of $47.02. The stock has a 50-day simple moving average of $38.70 and a two-hundred day simple moving average of $39.10. The stock has a market cap of $4.04 billion, a price-to-earnings ratio of 51.63, a PEG ratio of 3.12 and a beta of 1.81.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on DOCN shares. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research report on Wednesday. Cantor Fitzgerald upped their price target on shares of DigitalOcean from $39.00 to $43.00 and gave the company a “neutral” rating in a research report on Wednesday. Stifel Nicolaus boosted their price objective on shares of DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research report on Wednesday, December 18th. Bank of America upped their target price on DigitalOcean from $28.00 to $31.00 and gave the stock an “underperform” rating in a research report on Wednesday. Finally, JMP Securities upped their price objective on shares of DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a research report on Monday, January 27th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $42.18.

Insider Transactions at DigitalOcean

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

DigitalOcean Company Profile

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).