#5 - DigitalOcean (NYSE:DOCN)
A cloud computing company that utilizes AI is not particularly distinctive. But what separates DigitalOcean Holdings Inc. (NYSE: DOCN) from its competitors is its customer base of small- to mid-sized businesses. This allows the company to service a market that enterprise cloud providers generally avoid. And its products are backed by DigitalOcean's ability to provide technical support for these companies, which may lack in-house expertise.
DigitalOcean entered the graphic processing unit (GPU) market in 2023 after its acquisition of Paperspace. And the company is now one of few cloud providers to offer fractional GPU capacity, making it more cost-efficient for these smaller companies to deploy AI.
Like other stocks in this presentation, DigitalOcean went public in 2021, and the stock is down sharply from its closing price of around $100 in November 2021. However, DOCN stock dropped about 5% in 2024, and analysts have a consensus price target that suggests the stock may have a 22% upside in 2025.
About DigitalOcean
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).
Read More - Current Price
- $34.49
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $42.13 (22.1% Upside)
