DigitalOcean Defies Cloud Sector Slump with Earnings Beat
DigitalOcean shares surged 10% to a 52-week high of $59.42 after posting Q3 earnings that crushed analyst estimates. The cloud infrastructure provider delivered $0.54 EPS versus $0.31 expected, with revenue hitting $229.6 million against $226.6 million forecasts.
Institutional investors have been accumulating positions, with hedge funds and asset managers now holding 49.77% of outstanding shares. The stock's 33.56% annual gain contrasts sharply with broader tech sector volatility.
Despite a negative 92.51% return on equity, DigitalOcean maintains a robust 29.15% net margin. Analysts remain divided—eight recommend Buy while seven suggest Hold—as the current $58.10 share price exceeds consensus targets of $49.92.