From Nasdaq: 2025-02-26 10:41:00

DigitalOcean’s stock price surged after beating earnings expectations for Q4 2024. Revenue reached $204.9 million, exceeding the analyst estimate of $200.54 million. The company reported a non-GAAP EPS of $0.49, showing strong profitability. Full-year revenue for 2024 rose to $781 million, with a net income of $84 million, up 335% from the previous year.

Looking forward, DigitalOcean provided strong guidance for 2025, with anticipated revenue of $207 million to $209 million for Q1 and $870 million to $890 million for the full year. The company expects non-GAAP EPS between $1.85 and $1.95 per share, driven by AI offerings and core cloud services demand.

While investors reacted positively to the news, analysts remain cautiously optimistic with a Hold consensus rating. Some concerns include valuation and potential limited upside. DigitalOcean’s growth potential in cloud computing and AI is compelling, but investors should carefully consider the current market sentiment and financial metrics. DigitalOcean, traded on NYSE as DOCN, is a cloud and AI company worth considering for investors with moderate to high risk tolerance and a long-term outlook. MarketBeat tracks top analysts who recommend stocks daily, revealing five under-the-radar picks with high potential for savvy investors to explore.

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Read more at Nasdaq:: DigitalOcean Rides Cloud Wave and AI Hype to Strong Earnings