Is DigitalOcean Holdings Stock a Good Investment?

DigitalOcean Holdings Investment Advice

  DOCN
To provide specific investment advice or recommendations on DigitalOcean Holdings stock, we recommend investors consider the following general factors when evaluating DigitalOcean Holdings. This will help you to make an informed decision on whether to include DigitalOcean Holdings in one of your diversified portfolios:
  • Examine DigitalOcean Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research DigitalOcean Holdings' leadership team and their track record. Good management can help DigitalOcean Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Internet Services & Infrastructure space and any emerging trends that could impact DigitalOcean Holdings' business and its evolving consumer preferences.
  • Compare DigitalOcean Holdings' performance and market position to its competitors. Analyze how DigitalOcean Holdings is positioned in terms of product offerings, innovation, and market share.
  • Check if DigitalOcean Holdings pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about DigitalOcean Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in DigitalOcean Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if DigitalOcean Holdings is a good investment.
 
Sell
 
Buy
Hold
DigitalOcean Holdings advice module can be used to check and cross-verify current investment recommendation provided by analysts reviewing the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure DigitalOcean Holdings is not overpriced, please confirm all DigitalOcean Holdings fundamentals, including its shares owned by insiders, net income, earnings per share, as well as the relationship between the price to sales and current ratio . Given that DigitalOcean Holdings has a number of shares shorted of 6 M, we urge you to verify DigitalOcean Holdings market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

AverageDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine DigitalOcean Holdings Stock

Researching DigitalOcean Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 32.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.87. DigitalOcean Holdings had not issued any dividends in recent years.
To determine if DigitalOcean Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding DigitalOcean Holdings' research are outlined below:
DigitalOcean Holdings generated a negative expected return over the last 90 days
DigitalOcean Holdings has high historical volatility and very poor performance
DigitalOcean Holdings has high likelihood to experience some financial distress in the next 2 years
About 60.0% of the company shares are held by institutions such as insurance companies
Latest headline from gurufocus.com: Disposition of 3468 shares by Bratin Saha of DigitalOcean Holdings at 38.18 subject to Rule 16b-3

DigitalOcean Holdings Quarterly Liabilities And Stockholders Equity

1.53 Billion

DigitalOcean Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in DigitalOcean Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to DigitalOcean Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
21st of February 2024
Upcoming Quarterly Report
View
14th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
21st of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact DigitalOcean Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises DigitalOcean Holdings' investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2022-02-24
2021-12-310.090.10.0111 
2024-05-10
2024-03-310.380.430.0513 
2022-05-04
2022-03-310.120.07-0.0541 
2021-11-04
2021-09-300.070.120.0571 
2024-02-21
2023-12-310.370.440.0718 
2021-08-05
2021-06-300.05-0.02-0.07140 
2023-11-02
2023-09-300.360.440.0822 
2023-02-16
2022-12-310.20.280.0840 

Know DigitalOcean Holdings' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as DigitalOcean Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading DigitalOcean Holdings backward and forwards among themselves. DigitalOcean Holdings' institutional investor refers to the entity that pools money to purchase DigitalOcean Holdings' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Principal Financial Group Inc2024-09-30
1.3 M
Van Berkom And Associates Inc2024-09-30
1.3 M
Jpmorgan Chase & Co2024-09-30
1.2 M
Arrowstreet Capital Limited Partnership2024-09-30
1.2 M
Dimensional Fund Advisors, Inc.2024-09-30
1.1 M
Hood River Capital Management Llc2024-09-30
M
Morgan Stanley - Brokerage Accounts2024-09-30
865.7 K
Goldman Sachs Group Inc2024-09-30
726.4 K
Bank Of New York Mellon Corp2024-09-30
661.6 K
Blackrock Inc2024-06-30
9.4 M
Vanguard Group Inc2024-09-30
8.3 M
Note, although DigitalOcean Holdings' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

DigitalOcean Holdings' market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.29 B.

Market Cap

6.89 Billion

DigitalOcean Holdings' profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.02  0.02 
Return On Capital Employed 0.01  0.01 
Return On Assets 0.01  0.01 
Return On Equity(0.06)(0.06)
The company has Profit Margin (PM) of 0.11 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.12 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.12.
Determining DigitalOcean Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if DigitalOcean Holdings is a good buy. For example, gross profit margin measures DigitalOcean Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of DigitalOcean Holdings' profitability and make more informed investment decisions.

Evaluate DigitalOcean Holdings' management efficiency

DigitalOcean Holdings has return on total asset (ROA) of 0.0438 % which means that it generated a profit of $0.0438 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.3868) %, meaning that it created substantial loss on money invested by shareholders. DigitalOcean Holdings' management efficiency ratios could be used to measure how well DigitalOcean Holdings manages its routine affairs as well as how well it operates its assets and liabilities. At this time, DigitalOcean Holdings' Return On Tangible Assets are very stable compared to the past year. As of the 23rd of December 2024, Return On Capital Employed is likely to grow to 0.01, though Return On Equity is likely to grow to (0.06). At this time, DigitalOcean Holdings' Total Current Assets are very stable compared to the past year. As of the 23rd of December 2024, Return On Tangible Assets is likely to grow to 0.02, though Net Tangible Assets are likely to grow to (416.8 M).
Last ReportedProjected for Next Year
Book Value Per Share(3.48)(3.31)
Tangible Book Value Per Share(8.90)(8.45)
Enterprise Value Over EBITDA 30.25  28.73 
Price Book Value Ratio(10.54)(11.07)
Enterprise Value Multiple 30.25  28.73 
Price Fair Value(10.54)(11.07)
Enterprise Value7.5 B6.7 B
DigitalOcean Holdings showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Beta
1.829

Basic technical analysis of DigitalOcean Stock

As of the 23rd of December, DigitalOcean Holdings shows the Variance of 9.89, standard deviation of 3.15, and Mean Deviation of 2.11. DigitalOcean Holdings technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.

DigitalOcean Holdings' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific DigitalOcean Holdings insiders, such as employees or executives, is commonly permitted as long as it does not rely on DigitalOcean Holdings' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases DigitalOcean Holdings insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
 
Bratin Saha few days ago
Disposition of 3565 shares by Bratin Saha of DigitalOcean Holdings at 37.77 subject to Rule 16b-3
 
Cherie Barrett over two weeks ago
Disposition of 6578 shares by Cherie Barrett of DigitalOcean Holdings at 38.08 subject to Rule 16b-3
 
Bratin Saha over a month ago
Disposition of 16989 shares by Bratin Saha of DigitalOcean Holdings at 36.85 subject to Rule 16b-3
 
Bratin Saha over a month ago
Disposition of 3565 shares by Bratin Saha of DigitalOcean Holdings at 36.85 subject to Rule 16b-3
 
Hilary Schneider over a month ago
Acquisition by Hilary Schneider of 441 shares of DigitalOcean Holdings at 33.97 subject to Rule 16b-3
 
Warren Jenson over two months ago
Acquisition by Warren Jenson of 317 shares of DigitalOcean Holdings at 41.34 subject to Rule 16b-3
 
Hilary Schneider over two months ago
Acquisition by Hilary Schneider of 338 shares of DigitalOcean Holdings at 41.34 subject to Rule 16b-3
 
Steinfort Matt over three months ago
Disposition of 14961 shares by Steinfort Matt of DigitalOcean Holdings at 37.92 subject to Rule 16b-3
 
Bratin Saha over three months ago
Disposition of 2510 shares by Bratin Saha of DigitalOcean Holdings at 37.55 subject to Rule 16b-3
 
Warren Adelman over three months ago
Disposition of 2391 shares by Warren Adelman of DigitalOcean Holdings at 33.29 subject to Rule 16b-3
 
Pueo Keffer over three months ago
Acquisition by Pueo Keffer of 11785 shares of DigitalOcean Holdings subject to Rule 16b-3
 
Pueo Keffer over three months ago
Acquisition by Pueo Keffer of 371 shares of DigitalOcean Holdings at 33.97 subject to Rule 16b-3

DigitalOcean Holdings' Outstanding Corporate Bonds

DigitalOcean Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. DigitalOcean Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most DigitalOcean bonds can be classified according to their maturity, which is the date when DigitalOcean Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand DigitalOcean Holdings' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing DigitalOcean Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider DigitalOcean Holdings' intraday indicators

DigitalOcean Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of DigitalOcean Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

DigitalOcean Holdings Corporate Filings

F4
19th of December 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
13A
13th of November 2024
The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934
ViewVerify
13A
12th of November 2024
An amended filing to the original Schedule 13G
ViewVerify
8K
4th of November 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
DigitalOcean Holdings time-series forecasting models is one of many DigitalOcean Holdings' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary DigitalOcean Holdings' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

DigitalOcean Stock media impact

Far too much social signal, news, headlines, and media speculation about DigitalOcean Holdings that are available to investors today. That information is available publicly through DigitalOcean media outlets and privately through word of mouth or via DigitalOcean internal channels. However, regardless of the origin, that massive amount of DigitalOcean data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of DigitalOcean Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of DigitalOcean Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to DigitalOcean Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive DigitalOcean Holdings alpha.

DigitalOcean Holdings Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards DigitalOcean Holdings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

DigitalOcean Holdings Historical Investor Sentiment

Investor biases related to DigitalOcean Holdings' public news can be used to forecast risks associated with an investment in DigitalOcean. The trend in average sentiment can be used to explain how an investor holding DigitalOcean can time the market purely based on public headlines and social activities around DigitalOcean Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
DigitalOcean Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for DigitalOcean Holdings and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average DigitalOcean Holdings news discussions. The higher the estimate score, the more favorable the investor's outlook on DigitalOcean Holdings.

DigitalOcean Holdings Corporate Management

Cherie BarrettSenior OfficerProfile
Wade WegnerChief OfficerProfile
Gabriel MonroyChief OfficerProfile
Bratin SahaChief OfficerProfile
Lawrence DAngeloChief OfficerProfile
Warren JensonIndependent DirectorProfile
When determining whether DigitalOcean Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of DigitalOcean Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Digitalocean Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Digitalocean Holdings Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DigitalOcean Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DigitalOcean Holdings. If investors know DigitalOcean will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DigitalOcean Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.65
Earnings Share
0.86
Revenue Per Share
8.348
Quarterly Revenue Growth
0.121
Return On Assets
0.0438
The market value of DigitalOcean Holdings is measured differently than its book value, which is the value of DigitalOcean that is recorded on the company's balance sheet. Investors also form their own opinion of DigitalOcean Holdings' value that differs from its market value or its book value, called intrinsic value, which is DigitalOcean Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DigitalOcean Holdings' market value can be influenced by many factors that don't directly affect DigitalOcean Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between DigitalOcean Holdings' value and its price, as these two are different measures arrived at by various means. Investors typically determine if DigitalOcean Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DigitalOcean Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.