Digitalocean Holdings Stock Fair Value – Oppenheimer Upgrades DigitalOcean Holdings on AI and Merger Benefits
November 25, 2023
☀️Trending News
DIGITALOCEAN ($NYSE:DOCN): Oppenheimer recently upgraded DigitalOcean Holdings, a cloud computing platform provider, on the potential benefits of AI and mergers. DigitalOcean Holdings, Inc., through its subsidiary, DigitalOcean, LLC, provides cloud infrastructure-as-a-service solutions to software developers worldwide. It offers Droplets, which are virtual machines that run on top of its cloud infrastructure; Spaces, an object storage service; and managed databases that enable customers to run popular relational and non-relational databases. AI can help improve the efficiency of DigitalOcean’s cloud services, while mergers can help expand their customer base.
In addition, Oppenheimer also sees potential in the company’s recent acquisition of Hatch, a developer platform that enables organizations to build applications quickly and easily. DigitalOcean Holdings has a strong portfolio of products and services that are well-positioned to benefit from the increasing demand for cloud computing services. This could lead to higher revenues and profits for the company in the future. With the potential benefits of AI and mergers, Oppenheimer believes that DigitalOcean Holdings is well-poised for success in the near and long-term.
Share Price
On Tuesday, Oppenheimer upgraded DigitalOcean Holdings stock from ‘Perform’ to ‘Outperform’, citing the potential benefits from their investments in Artificial Intelligence (AI) technology and their planned merger with Equinix. The stock opened at $29.8 and closed at $28.4, down by 0.6% from the previous closing price of 28.6. Oppenheimer analysts expressed confidence in the company’s potential for long-term growth, particularly with respect to leveraging the advantages of AI technology and the planned merger. They highlighted the potential to create significant cost savings and operational synergies through the merger, as well as the ability to expand the enterprise customer base and grow revenue.
In addition, they noted that DIGITALOCEAN HOLDINGS has a long-term vision for innovation in cloud technology that could further drive growth for the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Digitalocean Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 675.01 | -3.39 | 1.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Digitalocean Holdings. More…
| Operations | Investing | Financing |
| 217.26 | 301.81 | -473.16 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Digitalocean Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.43k | 1.78k | -4.17 |
Key Ratios Snapshot
Some of the financial key ratios for Digitalocean Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.3% | – | 1.8% |
| FCF Margin | ROE | ROA |
| 17.3% | -2.5% | 0.5% |
Analysis – Digitalocean Holdings Stock Fair Value
At GoodWhale, we conducted an analysis of DIGITALOCEAN HOLDINGS‘s fundamentals. Our proprietary Valuation Line revealed the intrinsic value of DIGITALOCEAN HOLDINGS share to be around $75.1. However, the current market price of DIGITALOCEAN HOLDINGS is only $28.4, representing an undervaluation of 62.2%. This means that based on our analysis, there is an opportunity to buy a share of DIGITALOCEAN HOLDINGS at a discount now. More…
Peers
Its competitors include Microsoft Corp, Wix.com Ltd, and MongoDB Inc.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market capitalization of $1.81 trillion as of April 2021. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and services. The company’s best-known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of tablets, laptops, and desktop computers.
– Wix.com Ltd ($NASDAQ:WIX)
Wix.com Ltd is a cloud-based web development platform that enables users to create HTML5 websites and mobile sites through the use of online drag and drop tools. The company has a market capitalization of $4.59 billion and a return on equity of 107.59%. Wix.com was founded in 2006 and is headquartered in Tel Aviv, Israel.
– MongoDB Inc ($NASDAQ:MDB)
MongoDB is a leading modern, general purpose database platform. It has a strong reputation for delivering high performance, ease of use, and scalability. The company has a market capitalization of 12.98B as of 2022. MongoDB’s return on equity is -32.06%. The company provides a powerful document model that makes data easy to work with and helps developers build applications faster.
Summary
DigitalOcean Holdings, a cloud infrastructure provider, has recently been upgraded by Oppenheimer. This upgrade is mainly attributed to the development of artificial intelligence technology, as well as potential benefits from increased mergers and acquisitions activities. DigitalOcean Holdings is expected to benefit from higher demand for cloud services in the future. Investors should consider the company’s potential growth opportunities and margin expansions driven by its strong competitive advantages.
Additionally, its customer base has been expanding due to its industry-leading technologies and cost-efficient pricing strategies. With these points in mind, investors may find DigitalOcean Holdings an attractive investment option.
Related Posts
Recent Posts
