Reading the tape
NYSE: DOCN
DigitalOcean Holdings, Inc.
Technology · Software - Infrastructure
Market Cap
$15.12B
52w High
$151.64
52w Low
$25.56
P/E
54.04
Volume
11.79M
Outstanding Shares
102.39M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inHigh confidence
1Y Price: 349.33%Revenue (TTM): 17.61%FCF (TTM): 14.83%P/E: 80th pct
What changed
The stock rose 349.33% over the last year. Revenue grew 17.61% over the trailing twelve months. Operating margin moved from 14.52% to 16.44%. Free cash flow grew 14.83% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/E range (80th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 16.44% — continued expansion would be needed to justify the premium. Revenue growth of 17.61% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally.
CEOPadmanabhan T. Srinivasan
SectorTechnology
IndustrySoftware - Infrastructure
Employees1,210
IPO dateMar 24, 2021
Valuation
Forward P/E—
EV/EBITDA13.47
Enterprise value$4.88B
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Revenue growth22.4%
Gross margin58.49%▲0.29%vs FY2024
Operating margin16.44%▲49.38%vs FY2024
ROE-903.67%▼2070.66%vs FY2024
Analyst consensus
RatingBuy
Target price$81.13▼45.07%
12
Buy
7
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 5, 2026
Q2 FY26 · EPS est $0.27 · Revenue est $249.76M
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