DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses. The customers use the platform for a wide range of cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, and managed services, among many others. Geographically, the company generates maximum revenue from North America and also has a presence in Europe, Asia, and the Rest of the world.
The chart shows the growth of an initial investment of $10,000 in DigitalOcean Holdings, Inc., comparing it to the performance of the S&P 500 index.
All prices have been adjusted for splits and dividends.
DigitalOcean Holdings, Inc. (DOCN) has returned 85.05% so far this year and 233.86% over the past 12 months. Looking at the last ten years, DOCN has achieved an annualized return of 8.05%, underperforming the Benchmark (SPY), which averaged 12.23% per year.
The table below presents the monthly returns of DigitalOcean Holdings, Inc. (DOCN) with color gradation from worst to best to easily spot seasonal factors.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 13.59% | 2.08% | 56.62% | 2.05% | ||||||||
| 2025 | 19.61% | 6.94% | -22.74% | -7.07% | -10.56% | 1.75% | -0.85% | 18.62% | 8.03% | 20.30% | 8.61% | 9.81% |
| 2024 | -6.33% | 11.40% | 0.24% | -13.82% | 3.84% | -6.51% | -4.28% | 13.70% | 9.96% | -1.98% | -4.82% | -10.93% |
| 2023 | 12.93% | 8.33% | 22.87% | -18.86% | 25.00% | 4.59% | 23.34% | -44.55% | -11.52% | -14.43% | 46.42% | 21.45% |
| 2022 | -29.47% | 1.42% | -0.02% | -33.56% | 23.08% | -16.76% | -2.01% | 3.16% | -12.44% | -1.62% | -19.38% | -14.10% |
| 2021 | 1.52% | 2.98% | -3.62% | 32.80% | -6.45% | 17.64% | 25.51% | 24.37% | 2.91% | -22.33% |
The charts below present risk-adjusted performance metrics for DigitalOcean Holdings, Inc. (DOCN) and compare them to a Benchmark (SPY). These indicators evaluate an investment's returns against its associated risks.
The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk.
These values reflect how efficiently the investment has delivered returns relative to its volatility over different time periods. All figures are annualized and based on daily total returns.
The chart below shows the rolling Sharpe ratio of DOCN compared to the benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.
The current DigitalOcean Holdings, Inc. volatility is 4.39%, representing the standart deviation of percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
The Drawdowns chart displays portfolio losses from any high point along the way. It shows the maximum percentage drop from a peak to a trough over a specified period, indicating the risk of significant losses.
Although chart shows positive values, it represents the percentage drop from the peak, so a value of 10% means the portfolio has dropped 10% from its highest point.
The income statement provides a summary of a company's revenues, expenses, and profits over a specific period. It shows how much money the company earned (revenues) and how much it spent (expenses), leading to the net income or profit. This statement is crucial for understanding a company's financial performance and profitability.
| 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|
| Liabilities And Equity (USD) | 1.64B | 1.46B | 1.82B | 2.10B |
| Temporary Equity Attributable To Parent (USD) | - | - | - | - |
| Temporary Equity (USD) | - | - | - | - |
| Equity Attributable To Parent (USD) | -202.96M | -313.70M | 51.09M | 578.20M |
| Equity Attributable To Noncontrolling Interest (USD) | - | - | - | - |
| Equity (USD) | -202.96M | -313.70M | 51.09M | 578.20M |
| Other Non-current Liabilities (USD) | - | - | - | 1.88M |
| Long-term Debt (USD) | - | - | - | 1.46B |
| Noncurrent Liabilities (USD) | 1.62B | 1.58B | 1.60B | 1.46B |
| Other Current Liabilities (USD) | 166.39M | 188.69M | 143.13M | 45.58M |
| Accounts Payable (USD) | 54.57M | 3.96M | 21.14M | 12.66M |
| Current Liabilities (USD) | 220.96M | 192.65M | 164.27M | 58.24M |
| Liabilities (USD) | 1.84B | 1.77B | 1.76B | 1.52B |
| Other Non-current Assets (USD) | 547.04M | 512.38M | 477.26M | 38.38M |
| Intangible Assets (USD) | 117.72M | 140.15M | 118.93M | 42.92M |
| Fixed Assets (USD) | 432.54M | 305.44M | 273.17M | 249.64M |
| Noncurrent Assets (USD) | 1.10B | 957.97M | 869.36M | 330.94M |
| Other Current Assets (USD) | 524.17M | - | - | - |
| Prepaid Expenses (USD) | 17.54M | - | - | - |
| Current Assets (USD) | 541.72M | 502.99M | 946.55M | 1.77B |
| Assets (USD) | 1.64B | 1.46B | 1.82B | 2.10B |
DigitalOcean, which provides cloud and AI services to small and medium-sized businesses, has seen its stock surge 77% in 2026 as AI-related revenue jumped 150% year-over-year. The company is raising $800 million for data center infrastructure and trading at attractive valuations with forward P/S ratios of 7.3 (2026) and 5.6 (2027), suggesting potential 80% upside. However, heavy capital expenditures for AI infrastructure may pressure near-term earnings despite strong long-term growth prospects.
DigitalOcean has delivered 115% gains over the past year, significantly outperforming Oracle's 4% gain, despite Oracle's massive $553 billion backlog in AI infrastructure contracts. DigitalOcean's success is driven by its cost-effective cloud platform for developers and SMBs, strong AI offerings with 150% YoY ARR growth, and expansion plans adding 31 MW of capacity. Trading at 8.4x sales with projected revenue of $1.78 billion in three years, the stock could potentially double from current levels.
The Vanguard Total Stock Market ETF (VTI), which tracks all 3,498 U.S. listed companies, could help investors build million-dollar fortunes through steady long-term returns. While it offers lower volatility and diversification compared to concentrated indexes like the S&P 500, it still generated 9.2% annual returns since inception and 15% over the last decade. An investor could reach $1 million with a $100,000 initial investment in 31-40 years at conservative return rates, or through consistent $500 monthly contributions.
Glenview Capital Management initiated a new $96.45 million position in DigitalOcean Holdings during Q4 2025, acquiring 2,004,299 shares. The investment became the fund's 11th-largest holding at 1.96% of AUM. DigitalOcean reported strong earnings with 18% revenue growth, 123% spike in ARR from $1M+ customers, and 150% AI ARR growth, positioning itself as a platform for high-growth cloud and AI workloads.
DigitalOcean, a cloud and AI services provider focused on small and medium-sized businesses, has surged 68% over the past 12 months. The company's AI business revenue grew 150% year-over-year in Q4 2025, with total ARR reaching $970 million. Despite strong performance, the stock trades at a discount to historical valuations, suggesting potential for further gains as the company accelerates revenue growth through 2026-2027.
DigitalOcean reported strong Q4 2025 earnings with $242M revenue beating expectations and stock rising 6%. The company's AI-specific Annual Run-Rate Revenue reached $120M with 150% growth, while high-value customers (>$1M annually) grew 123% with zero churn. DigitalOcean is successfully positioning itself as an 'Agentic Inference Cloud' for developers and SMBs, capturing the AI application layer without competing directly with hyperscalers on model training.
Salesforce has discontinued development on Heroku, its platform-as-a-service offering, shifting to a sustaining engineering model with no new features. This creates an opportunity for DigitalOcean's App Platform to capture Heroku's customers seeking alternatives. DigitalOcean has already published migration guides and is offering incentives to convert users, positioning itself to benefit from accelerating revenue growth in 2026.
DigitalOcean, a cloud platform serving small and mid-sized businesses, is positioned for significant growth due to its rapidly expanding AI services. The company's AI revenue has doubled for five consecutive quarters, and its upcoming Q4 2025 earnings report on Feb. 24 could be a major catalyst. Trading at attractive valuations (P/S of 7.2 and P/E of 24.9), the stock has already gained 27% in early 2026 but may see further upside if AI revenue continues doubling as expected.
While Nebius Group offers impressive triple-digit revenue growth, it remains unprofitable with widening losses expected for years. DigitalOcean presents a safer alternative in the AI data center space—already profitable with a 99% net dollar retention rate, 640,000 customers, and consistent 15% year-over-year revenue growth. Trading near analyst targets at 25x forward earnings, DigitalOcean has beaten bottom-line estimates for 10 consecutive quarters.
While Nebius has experienced explosive growth with 462% revenue surge in 2024, the article argues DigitalOcean presents a more sustainable alternative for AI infrastructure exposure. Nebius faces challenges including dependence on major clients, significant capital requirements for expansion, and expected losses in 2026-2027. DigitalOcean offers more stable growth with profitability, reasonable valuation, and a defensible niche serving smaller businesses and developers.
