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

DigitalOcean (NYSE:DOCN) had its price target lifted by equities research analysts at Bank of America from $72.00 to $86.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Bank of America‘s target price indicates a potential upside of 36.52% from the stock’s current price.

A number of other research firms have also weighed in on DOCN. Wall Street Zen lowered DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Barclays upped their price objective on DigitalOcean from $49.00 to $63.00 and gave the stock an “overweight” rating in a research report on Monday, January 12th. UBS Group lifted their target price on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Royal Bank Of Canada set a $60.00 target price on shares of DigitalOcean in a research note on Tuesday. Finally, Oppenheimer started 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. Eight research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $58.38.

DigitalOcean Stock Up 6.3%

Shares of NYSE DOCN opened at $63.00 on Wednesday. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $70.43. The firm has a market cap of $5.76 billion, a P/E ratio of 25.40, a P/E/G ratio of 8.32 and a beta of 1.76. The business’s 50 day moving average price is $55.78 and its 200 day moving average price is $45.13.

Institutional Trading of DigitalOcean

Institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new position in DigitalOcean in the 2nd quarter valued at $22,633,000. Alyeska Investment Group L.P. acquired a new stake in shares of DigitalOcean in the third quarter valued at about $21,808,000. Arrowstreet Capital Limited Partnership boosted its position in DigitalOcean by 90.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock worth $57,496,000 after acquiring an additional 568,823 shares during the last quarter. Vanguard Group Inc. grew its stake in DigitalOcean by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock valued at $319,836,000 after acquiring an additional 442,617 shares in the last quarter. Finally, Franklin Resources Inc. raised its holdings in DigitalOcean by 784.2% in the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after acquiring an additional 438,411 shares during the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

DigitalOcean News Summary

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 beat on both revenue and EPS: DigitalOcean reported $242.4M in revenue and $0.44 EPS, topping consensus and the company’s press release emphasized accelerating top-line momentum. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: AI ARR and customer expansion are driving upside: management reported an AI-specific ARR surge (roughly 150% YoY) and big-customer spending increased materially, supporting the narrative that DigitalOcean is moving up‑market. AI Momentum Propels DigitalOcean Past Estimates With 150% ARR Surge
• Positive Sentiment: Product/supply diversification with AMD partnership: the company is expanding AMD-powered AI Droplets (Instinct GPUs), which improves cost/performance and supply security versus single-vendor GPU reliance. DigitalOcean Expands AMD AI Cloud As Investors Weigh Growth And Margins
• Neutral Sentiment: High-quality, recurring revenue and profitability: management noted sticky platform revenue (storage, networking, inference) and DigitalOcean reported solid GAAP income and robust margins, underpinning a sustainable business model. DigitalOcean Stock / Company Overview (MarketBeat)
• Neutral Sentiment: Revenue growth outlook raised even as company transitions: management guided to stronger revenue growth (acceleration into 2026/2027) while investing to add capacity — a tradeoff investors should watch. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Negative Sentiment: Near-term EPS guidance came in well below Street expectations (Q1 and FY2026 ranges below consensus), which pressured some investors worrying about margin dilution. DigitalOcean rises after Q4 beat
• Negative Sentiment: Planned higher capex and lower near-term free‑cash‑flow margins (guidance ~15–17% for 2026) mean management is spending to expand supply — this supports growth but can compress cash metrics short-term. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Negative Sentiment: Some accounting/return metrics remain mixed (e.g., an anomalous negative ROE noted in summaries), which could concern value-focused investors until the growth/investment cycle stabilizes. DigitalOcean Earnings Report (MarketBeat)

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.