From Nasdaq:

Amazon is known for more than just e-commerce. Their cloud-computing platform, Amazon Web Services (AWS), is crucial, bringing in 67% of the company’s total operating income despite being only 16% of sales. Meanwhile, DigitalOcean, a smaller AWS rival, is growing faster and has desirable traits, like a usage-based business model and strong free cash flow. While DigitalOcean shows promise, its recent CEO replacement and modest growth prospects for 2024 make it less of a timely investing opportunity, lacking a compelling valuation at this time.

DigitalOcean is a good business, but not a compelling buy currently. John Mackey, former CEO of Whole Foods Market, is on the Motley Fool’s board of directors. The Motley Fool has positions in Amazon and DigitalOcean.



Read more at Nasdaq: This Cloud Company Is Less Than 1% the Size of Amazon’s AWS, but It’s Growing Faster and It Expects Double-Digit Growth Again in 2024