DigitalOcean Holdings' Earnings Growth Driven by Increased Investment and Market Volatility

Frontier Small Cap Growth Fund’s first quarter 2025 investor letter reported Class N shares returned -14.43%, compared to -11.12% for the benchmark. The fund’s 12-month return was -14.50%, outperforming the benchmark. US equities traded lower in Q1, with the fund’s top 5 holdings highlighted for 2025 potential.

DigitalOcean Holdings, Inc. (NYSE:DOCN) was featured in the Frontier Small Cap Growth Fund’s Q1 2025 investor letter. The cloud computing platform saw a one-month return of -2.14% and a 10.92% loss over the past year. On July 7, 2025, DOCN stock closed at $28.87 per share with a market cap of $2.628 billion.

Frontier Small Cap Growth Fund initiated a position in DigitalOcean Holdings, Inc. (NYSE:DOCN) due to market volatility creating investment opportunities. The new CEO’s increased investment in services is expected to drive earnings growth. The fund believes more developers will use DOCN’s services for cost-effective AI development, leading to increased earnings.

DigitalOcean Holdings, Inc. (NYSE:DOCN) revenue increased 14% year-over-year to $211 million in Q1. While 20 hedge funds held DOCN shares at the end of the quarter, the focus remains on AI stocks for higher returns. An undervalued AI stock poised for significant gains is recommended for investors seeking promising opportunities.

Read more at Yahoo Finance: Here’s What Drives DigitalOcean Holdings’ (DOCN) Earnings Growth