Digitalocean Holdings Stock Intrinsic Value – Oppenheimer Analysts Upgrade DigitalOcean Holdings Inc to Outperform Rating
December 11, 2023
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DIGITALOCEAN ($NYSE:DOCN): DigitalOcean Holdings Inc, a cloud infrastructure provider, recently saw an upgrade from Oppenheimer analysts, who gave the company an Outperform rating. The news was announced by the Knox Daily. DigitalOcean Holdings Inc is a cloud computing company that provides cloud hosting and cloud services for businesses of all sizes. The company offers a range of cloud solutions, from custom virtual private servers to managed databases and storage solutions.
The Outperform rating from Oppenheimer analysts is a positive sign for DigitalOcean Holdings Inc. The rating demonstrates the analysts’ confidence in the company’s future prospects and indicates that they believe DigitalOcean Holdings Inc is well-positioned to take advantage of growth opportunities in the cloud infrastructure market. This upgrade is likely to build investor confidence and increase the attractiveness of DigitalOcean Holdings Inc as an investment option.
Price History
On Wednesday, analysts from Oppenheimer upgraded the stock of DigitalOcean Holdings Inc to an Outperform rating. This news sent the stock surging 1.3%, as the opening price of $30.6 closed higher at $30.5 compared to its previous closing price of $30.1. This is the first time that DigitalOcean Holdings Inc has achieved this rating, and it could be a sign of greater things to come. With the upgrade, analysts noted that DigitalOcean Holdings Inc is well-positioned to benefit from the increased demand for digital infrastructure services due to the current global pandemic.
They also noted that the company’s transition to a public company has been smoother than expected and that its future growth potential is strong. The upgrade from Oppenheimer has certainly given investors a reason to be optimistic about DigitalOcean Holdings Inc, and the company is expected to experience more growth in the future. 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 Intrinsic Value
We at GoodWhale have conducted an in-depth analysis of DIGITALOCEAN HOLDINGS‘ wellbeing and have come to a fair valuation for the company’s shares. Our proprietary Valuation Line suggests that the fair value of each DIGITALOCEAN HOLDINGS share is around $74.7, yet the stock is currently trading at $30.5 – a whopping 59.2% below the fair value. This presents a great opportunity for investors to get into DIGITALOCEAN HOLDINGS at a bargain price. More…
Peers
Its competitors include Microsoft Corp, Wix.com Ltd, and MongoDB Inc.
– Microsoft Corp ($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 Inc recently received an Outperform rating upgrade from Oppenheimer analysts. This reflects their confidence in the company’s potential for long-term growth. DigitalOcean provides cloud infrastructure services including virtual private servers and Kubernetes clusters, allowing businesses to scale quickly and easily. Its cloud products are competitively priced and widely used by developers and other IT professionals.
The company also offers various development tools such as tutorials, sample codes and other resources. DigitalOcean has recently expanded their services to include managed databases, serverless applications and machine learning solutions. Investors should take note of the company’s strong fundamentals and potential for future growth, making it a solid investment option.
