DigitalOcean Holdings, Inc. (DOCN) Stock

DigitalOcean Holdings, Inc. (DOCN) is a Technology stock trading at $119.03 (as of 2026-07-20), with a market capitalization of $12.42B and a trailing P/E of 52.5. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. Its platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and medium size businesses. The company offers infrastructure solutions across compute, storage, and networking, as well as enables developers to extend the native capabilities of its cloud with fully managed application, container, and database offerings. Its users include software engineers, researchers, data scientists, system administrators, students, and hobbyists. The company's customers use its platform in various industry verticals and for a range of use cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, managed services, and others. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.

Understand DigitalOcean Holdings, Inc.: how it makes money

DigitalOcean provides a cloud computing platform with on-demand infrastructure (compute, storage, networking) and managed services (application, containers, and databases) for developers, startups, and small to medium-sized businesses, generating revenue from customer usage and recurring subscriptions for its cloud offerings.

Profitability is driven by recurring revenue momentum, where net dollar retention above 100% (plus net new annual recurring revenue) supports expansion, while contraction and churn can offset it.

Revenue by segment (latest quarter)
B&S	$0.1B
Cloudways	$0.0B
Other	$0.2B

Business quality (Solid): Recurring-revenue indicators (net new annual recurring revenue, remaining performance obligations, and net dollar retention) are available, but the provided segment breakdown is limited, and churn and contraction are real headwinds.

Valuation: Trades at 76× trailing earnings · $18B market cap.

Bull case

Recurring revenue momentum is positive, with Net New Annual Recurring Revenue of 0.03 USD_B: This supports continued inflow of contract value rather than relying only on new customers.
Existing customer value is not shrinking, with Net Dollar Retention Rate at 101%: Net Dollar Retention above 100% indicates expansion is slightly outweighing contraction for the cohort measured.
The company reports Remaining Performance Obligations of 0.24 USD_B: This provides a backlog-like view of future recognized revenue tied to customer commitments.

Bear case

Contraction is present, at 15 percent: Even with overall net dollar retention above 100%, some customers reduce spend, which can limit growth.
Churn is a meaningful component of net dollar retention, with Churn Portion of Net Dollar Retention at 10 percent: Customer churn and downgrades can pressure recurring revenue growth.
Gross margin (56.1 percent) and operating margin (14.2 percent) suggest limited operating headroom if growth slows: If net new recurring revenue weakens, operating leverage may be constrained by ongoing costs.
Artificial Intelligence and Machine Learning Revenue is 0.0 USD_B in the provided facts: If investor expectations include AI-related monetization, the current reported contribution appears absent in this snapshot.

Valuation — source: SEC EDGAR (first-party)
Price	$119.03
Market Cap	$12.42B
P/E Ratio	52.5
EV / EBITDA	40.7
Price / Book	14.00
Price / Sales	13.10
FCF Yield	1.5%
DCF Value (model)	$6.65
DCF Upside vs Price	-94.4%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$901.43M
Net Margin	28.8%
Revenue Growth (YoY)	22.4%
EPS Growth (YoY)	-59.5%
FCF Growth (YoY)	225.8%

Financial Health — source: SEC EDGAR
Altman Z-Score	4.13 (safe)
Piotroski F-Score	8/9 (strong)

Valuation vs Sector & Industry
Stock P/E	52.5
Sector P/E (Technology)	34.9
Industry P/E (Business Services)	30.7
vs Sector	50.1%
vs Industry	70.7%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($1.03B)
Institutional Holders Tracked	10

Company
Sector	Technology
Industry	Business Services
CEO	Padmanabhan T. Srinivasan
Employees	1,210
Country	US
IPO Date	2021-03-24

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Data as of 2026-07-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.