DigitalOcean (NYSE:DOCN) Releases Q1 2025 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its first quarter 2025 earnings guidance on Tuesday. The company provided EPS guidance of 0.410-0.460 for the period, compared to the consensus EPS 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 Trading Down 1.7 %

Shares of DOCN traded down $0.73 during midday trading on Thursday, reaching $43.21. 1,791,755 shares of the company were exchanged, compared to its average volume of 1,333,421. The company has a market cap of $3.99 billion, a price-to-earnings ratio of 51.00, a P/E/G 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. The stock has a 50-day moving average price of $38.88 and a 200-day moving average price of $39.14.

Analyst Ratings Changes

DOCN has been the topic of several analyst reports. Canaccord Genuity Group lifted their price target on shares of DigitalOcean from $48.00 to $50.00 and gave the stock a “buy” rating in a research note on Wednesday. Morgan Stanley upgraded DigitalOcean from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $40.00 to $41.00 in a research note on Thursday, January 16th. Citigroup assumed coverage on DigitalOcean in a research note on Friday, January 24th. They issued a “buy” rating and a $45.00 target price for the company. Bank of America increased their price target on DigitalOcean from $28.00 to $31.00 and gave the stock an “underperform” rating in a research report on Wednesday. Finally, Stifel Nicolaus boosted their price objective on DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research report on Wednesday, December 18th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and five have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $43.27.

Insider Activity at DigitalOcean

In related news, CFO Matt Steinfort sold 12,498 shares of the stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total transaction of $499,920.00. Following the completion of the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Bratin Saha sold 3,468 shares of the stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $38.18, for a total value of $132,408.24. Following the sale, the insider now owns 379,795 shares of the company’s stock, valued at $14,500,573.10. This trade represents a 0.90 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 20,255 shares of company stock worth $790,163 over the last ninety days. 0.74% of the stock is currently owned by corporate 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).