Buy, Sell or Hold This US Mid Cap Stock-DOCN

Acrobull Canada Advisory Inc.

June 05			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Digital Ocean Holdings Inc.	DOCN-NYSE	Technology		$2.719 Billion	Medium

DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company provides on-demand infrastructure and platform tools for developers at growing technology companies.

Recent Highlights

Recent Highlights- Revenue Growth: DigitalOcean has been experiencing steady revenue growth driven by its strong customer base in the SMB (small and medium business) sector. This was reflected in their recent earnings, where the company reported a 13% YoY revenue growth, totaling $200.57 million in Q4 2024.

Profitability: The company has typically reported improving profit margins due to operational efficiencies, particularly from its infrastructure investments in cloud services. Expect the profitability metrics to trend positively as DigitalOcean continues expanding its AI-focused platform.

Fourth Quarter 2025 Highlights

DigitalOcean reported a total revenue of $211 million, reflecting a strong 14% increase compared to the same period last year. This growth highlights the company’s continued momentum in attracting and retaining customers, especially in the competitive cloud infrastructure market.

Alongside this, the company achieved an impressive Annual Run-Rate Revenue (ARR) of $843 million, also marking a 14% year-over-year increase, underscoring the company’s ability to generate stable and predictable recurring revenue from its growing customer base.

DigitalOcean's gross profit reached $129 million, which is an increase of 19% year-over-year. This rise in gross profit was accompanied by a robust gross profit margin of 61%, demonstrating the company’s ability to maintain high margins while scaling its infrastructure and services.

The company’s net income attributable to common stockholders soared to $38 million, an impressive 170% increase compared to the same quarter last year. This translates to a net income margin of 18%, indicating the company's strong operational efficiency and enhanced profitability as it grows.

Stock Observation- The company has delivered strong financial performance in the fourth quarter of 2025 and is anticipated to achieve even better results in the upcoming quarter. Currently, the RSI for the stock stands at 42, indicating that it is nearing oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$29.87 USD
Acrobull Recommendation	Buy at $28.20
Target Price	$32.52 USD
RSI Level	14 Day RSI 42
Total Shares Outstanding	91.03 Million
Shares held by Insiders Risk Factor Stop Loss	29.68% Medium 5%