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Upturn AI SWOT - About
DigitalOcean Holdings Inc (DOCN)
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Upturn Advisory Summary
04/01/2025: DOCN (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -36.33% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.11B USD | Price to earnings Ratio 37.97 | 1Y Target Price 45.46 |
Price to earnings Ratio 37.97 | 1Y Target Price 45.46 | ||
Volume (30-day avg) 1431600 | Beta 1.8 | 52 Weeks Range 26.63 - 47.02 | Updated Date 04/2/2025 |
52 Weeks Range 26.63 - 47.02 | Updated Date 04/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.89 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 10.82% | Operating Margin (TTM) 16.7% |
Management Effectiveness
Return on Assets (TTM) 4.21% | Return on Equity (TTM) -38.68% |
Valuation
Trailing PE 37.97 | Forward PE 17.7 | Enterprise Value 4377656928 | Price to Sales(TTM) 3.99 |
Enterprise Value 4377656928 | Price to Sales(TTM) 3.99 | ||
Enterprise Value to Revenue 5.61 | Enterprise Value to EBITDA 18.48 | Shares Outstanding 92067800 | Shares Floating 63827843 |
Shares Outstanding 92067800 | Shares Floating 63827843 | ||
Percent Insiders 32.1 | Percent Institutions 62.93 |
Analyst Ratings
Rating 3.62 | Target Price 40.73 | Buy 3 | Strong Buy 3 |
Buy 3 | Strong Buy 3 | ||
Hold 6 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
DigitalOcean Holdings Inc
Company Overview
History and Background
DigitalOcean was founded in 2011 with the goal of simplifying cloud infrastructure for developers and small businesses. It quickly gained popularity due to its simple pricing model, ease of use, and focus on the developer community. It went public in March 2021.
Core Business Areas
- Infrastructure as a Service (IaaS): Provides virtual servers (Droplets), storage, networking, and other infrastructure components.
- Platform as a Service (PaaS): Offers app deployment, databases, and other platform services to simplify application development and management.
- Managed Services: Provides managed databases, Kubernetes, and other services to reduce operational overhead for customers.
Leadership and Structure
DigitalOcean is led by CEO Paddy Srinivasan. The company has a typical corporate structure with departments for engineering, product, sales, marketing, and finance.
Top Products and Market Share
Key Offerings
- Droplets: Virtual servers that are the foundation of DigitalOcean's IaaS offering. Estimated market share in IaaS is around 2-3%. Competitors include AWS (AMZN), Azure (MSFT), and Google Cloud Platform (GOOGL).
- Managed Databases: Managed database services like MySQL, PostgreSQL, and Redis. No specific market share data available but contributing to revenue growth. Competitors include AWS RDS, Azure SQL Database, and Google Cloud SQL.
- DigitalOcean Kubernetes (DOKS): Managed Kubernetes service. Growing adoption within DigitalOcean's customer base. Competitors include AWS EKS, Azure AKS, and Google Kubernetes Engine (GKE).
Market Dynamics
Industry Overview
The cloud computing market is experiencing significant growth, driven by digital transformation, increasing demand for scalable infrastructure, and the rise of cloud-native applications. The industry is dominated by a few major players, but there's also space for specialized providers like DigitalOcean.
Positioning
DigitalOcean is positioned as a cloud provider that focuses on simplicity, affordability, and developer experience. It targets individual developers, startups, and small to medium-sized businesses (SMBs). Its competitive advantage lies in its ease of use and strong community support.
Total Addressable Market (TAM)
The global cloud computing market is expected to reach over $1 trillion by 2030. DigitalOcean is positioned to capture a portion of this TAM by focusing on its target market of developers and SMBs. While a smaller player, its focus and ease of use gives it competitive advantage.
Upturn SWOT Analysis
Strengths
- Ease of Use
- Affordable Pricing
- Strong Developer Community
- Focus on SMBs
- Simple Platform
Weaknesses
- Smaller Scale than Major Cloud Providers
- Limited Service Offerings Compared to Competitors
- Less Brand Recognition Compared to AWS, Azure, and GCP
- Dependence on a specific customer segment
Opportunities
- Expanding Service Offerings
- Growing Adoption of Cloud Computing Among SMBs
- Partnerships with Other Technology Companies
- Geographic Expansion
- AI and ML Cloud Applications
Threats
- Intense Competition from Major Cloud Providers
- Price Wars
- Economic Downturn
- Security Breaches
- Changing Technology Landscape
Competitors and Market Share
Key Competitors
- AMZN
- MSFT
- GOOGL
Competitive Landscape
DigitalOcean's advantages include its ease of use, focus on SMBs, and strong developer community. Its disadvantages include its smaller scale, limited service offerings, and less brand recognition compared to major cloud providers.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: DigitalOcean has experienced consistent revenue growth due to the increasing adoption of cloud computing among SMBs and developers.
Future Projections: Analyst estimates are needed from a financial data provider. Consensus for revenue and EPS growth should be inserted. A high growth rate can be expected as the company expands into new markets.
Recent Initiatives: Recent initiatives include expanding managed service offerings, improving developer experience, and strengthening partnerships.
Summary
DigitalOcean is a cloud provider focused on SMBs and developers, known for its ease of use and affordable pricing. While it competes with larger players, its focused approach allows it to carve out a niche. The company needs to carefully manage competition and continue to expand its service offerings to maintain its growth trajectory. Staying focused on its niche market segment is key to DigitalOcean's success.
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Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates (Hypothetical)
- Company Website
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share data is approximate and may vary depending on the source. Financial data is illustrative and should be replaced with actual values.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About DigitalOcean Holdings Inc
Exchange NYSE | Headquaters New York, NY, United States | ||
IPO Launch date 2021-03-24 | CEO & Director Mr. Padmanabhan T. Srinivasan | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 1210 | Website https://www.digitalocean.com |
Full time employees 1210 | Website https://www.digitalocean.com | ||
DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company provides on-demand infrastructure and platform tools for developers at growing technology companies. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute, storage, and networking products, including cloud firewalls, managed load balancers, and virtual private cloud software, as well as IP address management and domain name system management. In addition, the company provides platform-as-a-service (PaaS) and software-as-a-service (SaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. Further, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU droplets; GENAI platform, a solution for deploying AI applications; bare metal GPUS which provides access to a GPU server without any virtualization layer and gives developers with customizable server for their use case; and Jupyter Notebooks that provides cloud workspace and managed interactive development environment for exploring data and training, and building machine learning models. Its customers use its platform in various industry verticals, such as gaming, fintech, and cybersecurity, as well as for a range of use cases, including building and hosting websites, web and mobile applications development, AI integration, and building AI products and applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.
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