DigitalOcean (NYSE:DOCN) Given New $78.00 Price Target at The Goldman Sachs Group

DigitalOcean (NYSE:DOCN) had its target price raised by The Goldman Sachs Group from $50.00 to $78.00 in a research note issued to investors on Wednesday,Benzinga reports. The Goldman Sachs Group currently has a buy rating on the stock.

Other equities analysts also recently issued research reports about the stock. Canaccord Genuity Group raised their target price on shares of DigitalOcean from $65.00 to $80.00 and gave the company a “buy” rating in a research note on Friday, February 20th. Piper Sandler reiterated a “neutral” rating and set a $67.00 target price on shares of DigitalOcean in a report on Tuesday. Barclays upped their price target on DigitalOcean from $63.00 to $69.00 and gave the stock an “overweight” rating in a report on Wednesday. Oppenheimer began coverage on shares of DigitalOcean in a research note on Monday, November 10th. They set an “outperform” rating and a $60.00 price objective on the stock. Finally, Stifel Nicolaus set a $57.00 target price on shares of DigitalOcean in a research report on Tuesday. Nine research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $69.23.

DigitalOcean Price Performance

Shares of NYSE:DOCN opened at $59.32 on Wednesday. The business has a 50-day moving average of $56.09 and a two-hundred day moving average of $45.23. The firm has a market capitalization of $5.43 billion, a PE ratio of 23.45, a P/E/G ratio of 8.81 and a beta of 1.77. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $70.43.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of DigitalOcean by 5.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock worth $11,342,000 after acquiring an additional 16,162 shares in the last quarter. Intech Investment Management LLC lifted its position in shares of DigitalOcean by 59.2% in the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after buying an additional 14,655 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its holdings in shares of DigitalOcean by 12.9% in the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 18,884 shares of the company’s stock valued at $539,000 after buying an additional 2,155 shares during the period. AlphaQuest LLC raised its stake in DigitalOcean by 66.5% during the second quarter. AlphaQuest LLC now owns 15,386 shares of the company’s stock worth $439,000 after acquiring an additional 6,145 shares during the period. Finally, Y Intercept Hong Kong Ltd bought a new position in DigitalOcean in the second quarter worth about $478,000. Institutional investors own 49.77% of the company’s stock.

Key DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 beat and AI traction — DOCN topped revenue and EPS estimates; management reported AI-specific ARR of ~$120M (150% YoY) and signs of up‑market customer expansion and low churn, which supports a re-rating for the business model. DigitalOcean’s AI Surge: The Cloud Underdog Swims Upstream
• Positive Sentiment: Broad analyst optimism — Multiple firms raised price targets (examples: BofA to $86, Oppenheimer to $85, Goldman to $78, Cantor Fitzgerald/Citizens/JMP/Citizens lifts), signaling buy-side conviction that DOCN’s AI/inference positioning supports materially higher valuation. Analyst Price Target Coverage
• Neutral Sentiment: Strategic moves to secure capacity — DigitalOcean expanded its AMD Instinct GPU footprint to improve price‑performance and supply resilience vs. NVIDIA dependency; this supports longer‑term inference capacity but requires capital deployment. DigitalOcean Expands AMD AI Cloud
• Neutral Sentiment: High-margin profile but increased investment — The company reported strong adjusted EBITDA margins (~42% in 2025) and positive GAAP net income, yet plans to intentionally lower free-cash-flow margins (guidance ~15–17% in 2026) as it invests in capacity. DOCN Company Coverage
• Negative Sentiment: Guidance disappointed on EPS — Q1 and FY2026 EPS guidance was well below Street consensus (Q1 EPS guide ~0.22–0.27 vs. ~0.39 consensus; FY26 guide 0.75–1.00 vs. ~1.68 consensus), creating near-term uncertainty around profitability per share and contributing to profit‑taking. DigitalOcean Q4 2025 Financial Results (Press Release / Slides)

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.