DigitalOcean (NYSE:DOCN) Releases Q1 2025 Earnings Guidance

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

DOCN stock traded up $2.94 during trading on Wednesday, hitting $43.77. 828,551 shares of the company’s stock traded hands, compared to its average volume of 1,279,072. The business has a fifty day simple moving average of $38.70 and a two-hundred day simple moving average of $39.10. The firm has a market capitalization of $4.04 billion, a P/E ratio of 51.63, a PEG ratio of 3.12 and a beta of 1.81. DigitalOcean has a 1 year low of $26.63 and a 1 year high of $47.02.

Wall Street Analysts Forecast Growth

Several analysts have commented on DOCN shares. Bank of America lifted their price objective on shares of DigitalOcean from $28.00 to $31.00 and gave the company an “underperform” rating in a research note on Wednesday. Citigroup started coverage on shares of DigitalOcean in a research note on Friday, January 24th. They issued a “buy” rating and a $45.00 price target on the stock. JMP Securities upped their target price on shares of DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a report on Monday, January 27th. Stifel Nicolaus boosted their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research report on Wednesday, December 18th. Finally, JPMorgan Chase & Co. increased their price target on DigitalOcean from $40.00 to $45.00 and gave the company a “neutral” rating in a report on Wednesday. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $42.18.

Insider Activity at DigitalOcean

In related news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total value of $499,920.00. Following the completion of the transaction, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at $20,699,920. This represents a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Bratin Saha sold 4,289 shares of DigitalOcean stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $36.80, for a total value of $157,835.20. Following the transaction, the insider now directly 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. In the last 90 days, insiders have sold 20,255 shares of company stock worth $790,163. 0.74% of the stock is currently owned by company 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).