DigitalOcean (NYSE:DOCN) Price Target Raised to $78.00

DigitalOcean (NYSE:DOCN) had its price target raised by The Goldman Sachs Group from $50.00 to $78.00 in a research report sent to investors on Wednesday,Benzinga reports. The Goldman Sachs Group currently has a buy rating on the stock.

A number of other research firms have also recently commented on DOCN. Stifel Nicolaus set a $57.00 price objective on DigitalOcean in a research report on Tuesday. Citigroup reaffirmed a “buy” rating on shares of DigitalOcean in a research report on Friday, February 13th. UBS Group increased their price objective on shares of DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a research note on Thursday, November 6th. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Finally, Citizens Jmp upped their target price on shares of DigitalOcean from $60.00 to $83.00 and gave the company a “market outperform” rating in a report on Wednesday. Nine investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, DigitalOcean currently has a consensus rating of “Moderate Buy” and an average price target of $69.23.

DigitalOcean Trading Up 3.4%

Shares of DOCN opened at $56.09 on Wednesday. The firm has a fifty day simple moving average of $56.43 and a two-hundred day simple moving average of $45.48. The firm has a market cap of $5.16 billion, a PE ratio of 22.17, a P/E/G ratio of 20.44 and a beta of 1.77. DigitalOcean has a 1-year low of $25.45 and a 1-year high of $70.43.

Institutional Trading of DigitalOcean

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allworth Financial LP increased its holdings in shares of DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares during the last quarter. Huntington National Bank grew its holdings in DigitalOcean by 638.3% during the 4th quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after buying an additional 517 shares in the last quarter. NBC Securities Inc. bought a new stake in DigitalOcean in the 4th quarter worth approximately $32,000. Wilmington Savings Fund Society FSB bought a new stake in DigitalOcean in the 3rd quarter worth approximately $37,000. Finally, Transamerica Financial Advisors LLC raised its holdings in shares of DigitalOcean by 417.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock worth $38,000 after acquiring an additional 631 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

Key DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 AI momentum — DigitalOcean said its annual run‑rate revenue for its AI business jumped ~150% year‑over‑year in Q4, underscoring faster growth in its higher‑margin AI offerings aimed at SMBs, which supports a higher growth multiple. This Glorious Growth Stock Is Up 68% in 12 Months. Here’s Why More Gains Could Follow
• Positive Sentiment: Analyst upgrades — Multiple firms raised price targets recently (Barclays to $69, Bank of America to $86, Cantor Fitzgerald to $83), signaling increased sell‑side confidence in DigitalOcean’s revenue trajectory and margin leverage. DigitalOcean (NYSE:DOCN) Price Target Raised to $86.00 at Bank of America
• Positive Sentiment: Revenue guidance and scale — Management and press reports highlight a push toward >$1B revenue in 2026, which if achieved would mark a material inflection in scale for this SMB‑focused cloud player. DigitalOcean predicts $1B+ in 2026 revenue
• Positive Sentiment: Record Q4 revenue growth — Earnings commentary and highlights point to record revenue growth and improving fundamentals, giving investors more conviction in sustained topline expansion. DigitalOcean Holdings Inc (DOCN) Q4 2025 Earnings Call Highlights: Record Revenue Growth and …
• Positive Sentiment: Institutional expansion — Reports of strengthening cloud infrastructure presence and institutional expansion suggest broader market adoption beyond core SMB customers, supporting longer‑term growth. DigitalOcean (NYSE:DOCN) Strengthens Cloud Infrastructure Presence With Institutional Expansion
• Neutral Sentiment: Investor access / visibility — CEO and CFO will present at the Morgan Stanley TMT conference (March 3); the fireside chat and webcast increase investor access and may amplify guidance or detail AI monetization plans. DigitalOcean to Participate in Morgan Stanley Technology, Media & Telecom Conference
• Negative Sentiment: Profit‑taking volatility — After hitting a record high, the stock has seen pullbacks driven by short‑term profit‑taking, which can amplify intraday moves and create selling pressure even amid positive fundamentals. DigitalOcean (DOCN) Sheds 8.45% on Profit-Taking After Record High
• Negative Sentiment: Convertible‑note hedge risk — Analysts flagged complexity and potential dilution/counterparty risks tied to DigitalOcean’s 2030 convertible notes hedge, a disclosure that could concern value‑focused investors if dilution scenarios materialize. DigitalOcean’s 2030 Convertible Notes Hedge Poses Complex Dilution, Pricing, and Counterparty Risks

About DigitalOcean

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.