DigitalOcean Holdings, Inc focuses on offering businesses worldwide web hosting and VPS hosting services to turn itself into a digital cloud for companies. Nonetheless, most people know this company due to its stock value. This platform got into the NYSE stock exchange, and it has been publicly traded as DOCN since then.
DOCN is currently at $28.7, and although many analysts consider it an overvalued stock, others say it’s a safe investment. Are you wondering if you should invest in this stock? You’ve landed on the right page! Read on to learn what analysts predict will be of DOCN in the following years.
It’s worth noting that analysts have given DOCN an average rating of Hold, but its stats when talking about revenue have gotten 36.51% higher in September. As for net income, DOCN is 645.19% higher, which is one of the reasons why traders started thinking about investing in this stock.
NYSE: DOCN Overview
DOCN is currently on a high, and its current share value is $28,17. This stock was on a bad streak in the last months but was trying to recover from that. In July, for example, DOCN was $10.62, which is 38.39% less than what it is today. Nonetheless, DOCN was getting better market turnouts since its price got 11.92% higher in October.
Analysts consider DOCN to be excellent regarding equity and predict a forecast high in null years. Regardless of that, this stock is most likely going to deliver a lower return on assets than other stocks when compared to the infrastructure industry average.
Getting to the stock’s revenue forecast, you can expect it to grow a lot in the next three years. DOCN will have a 20.69% growth rate yearly. If you compare it to the infrastructure industry average, DOCN’s growth rate is 10.14% better than it since the industry average’s rate is only 10.55%. The U.S. market average is 6.77%, which is also lower than DOCNs.
Three out of nine Wall Street Analysts consider DOCN an excellent buy, two of them think it’s a decent one, other two think you should have it as a Hold, and the rest say it’s a strong sell at the moment. NYSE: DOCN is 8.35% higher from a $26.00 52-week low and 73.52% lower from a $106.40 52-week high.
NYSE: DOCN Stock Forecast 2022
Although the year it’s about to end, it’s essential to study the current performance of DOCN in the stock market and how it will evolve over the time we have left to know how things will go in the future. According to Wall Street analysts, the average price target of DOCN is $30.30 with a high forecast of $63.00 and a low one of $28.18. This tells us NYSE: DOCN is currently on a low.
Regardless of the stock being on a low, it has still been getting higher for months, so you can expect it to become more valuable in the time we have left in the year. The net income of this stock was 444.77% lower in March, but its cost of revenue was 18.24% higher.
Although DOCN’s EPS was missed by -40.07% in the first quarter of the year, it later beat it by 93.55% in the second and 65.87% in the third. DOCN started the year at a trading price of $80.33 and decreased by 64.9% across the year.
NYSE: DOCN Stock Forecast 2023
Wall Street analysts looking forward to predicting how DOCN will go in 2023 need to issue 12-month price goals for this company’s shares. The share forecast for this stock the next year goes from $27.00 to $63.00.
Regarding an average goal for DOCN, analysts predict it will get to $42.42 in the next 12 months. This means they expect this stock to get an upside of 50.6% from the current price it has on the market.
Some predictions also state DOCN will go on a low from February to April to start going up when May starts. Analysts expect DOCN to stay on and up until the end of the year, so it will be a great year for this company on the stock market.
The volatility of this stock will stay stable throughout the year with 21.68% being the highest volatility rate in 2023 and the lowest being 7.10%.
NYSE: DOCN Stock Forecast 2024
If you study the growth NYSE: DOCN will have in the following years, you will see there’s a bright future awaiting it. One of the things that prove that is the minimum target price of this stock in 2024, which is $38.91. Why is that important? Because it’s higher than the minimum target price this stock had in 2022, and it’s predicted to reach it in 2023.
DOCN’s share price could go up in May and stay stable for some months.
DOCN may trade at 10x sales by the end of 2024, and that’s a 35% upside of the current stock price of this stock over the next years.
If DOCN reaches all the targets analysts have for it, 2024’s upside will be one of the greatest seen these years. One of the only setbacks for this forecast is that DOCN’s competitors keep it from getting to the premium trade share price people expect it to have.
NYSE: DOCN Stock Forecast 2025
The development of how NYSE: DOCN goes over the years depends on how accurate the forecast for the previous years it is. However, if it is an accurate forecast, DOCN will keep getting higher in 2025. Seven analysts state the EPS growth of DOCN in 2025 will be 54.43% higher from now, and its revenue growth a 21.17%.
Although the revenue growth of DOCN in 2025 is set to be high, it’s not as high as it was in 2022 and how people expect it to be in 2023 in 2024. Therefore, some think it will get even lower in 2016.
EPS growth will have a higher average value than 2024’s, but its highs will be much lower. Predictions say EPS in 2025 will be 53.4% on average, 48.88% on a low, and 61.1% on a high. Compared to how DOCN has been in 2022, the EPS in the following years will be better and more stable.
Long-Term Forecast 2030
According to the DOCN predictions that analysts have made for the following five years, this stock will trade at 9x sales in 2030. This means DOCN could be worth $336 per share. Regardless of that, it’s worth noting some graphs show that DOCN could start decreasing its stock value after 2025.
The only way DOCN could get to that price in 2030 is by having a revenue growth of 400% and a yearly revenue growth of 22.5%. While that’s not impossible, the market is volatile, and there can always happen unforeseeable situations that make the company face harder times.
DigitalOcean’s competitors also play a key part in the revenue growth of DOCN since this stock could do worse on the market if they outsell the company. Nonetheless, predictions show that’s not that possible, so you shouldn’t worry about that when investing in DOCN.
In a nutshell, you could say the future of DOCN will be bright. This company also has 30% of its market cap in cash, and that can improve its cash flow in the future.
NYSE: DOCN Price Analysis
$28.17 is the current price of DOCN, and it’s been going up from previous months since it’s been on a low for a few months now. However, it’s not uncommon to see this happening since stocks often get to a low when investors can buy them to then go as high as they can.
NYSE: DOCN Prediction Conclusion
The best way to know which stocks are best for investment purposes is by reading studies of how assets will do in the following years. Stocks don’t work as cryptocurrencies, and you need an overview of what will happen to know if you should get them.
NYSE: DOCN is still going up from the low it had in the past months, but that means it could only go up in the future.
As for 2023 and 2024, the revenue growth rate of this stock is top-tier, so most analysts expect DOCN to skyrocket in those years. Even if its growth won’t be as good in 2025, the predictions for this year are not bad at all.
Regardless of that, the best part of the predictions that analysts have regarding DOCN is how the stock will do long-term since it seems DOCN’s share value will highly increase by then.
There’s a lot of information to analyze when studying market predictions for a stock. Do you have any concerns about what you read here? These are some of the most frequently asked people have after reading this article:
What Is DigitalOcean Holdings, Inc?
DigitalOcean Holdings, Inc is a cloud computing company that helps businesses work with an on-demand infrastructure for developers to build anything they want online. This business can help start-ups, big enterprises, and small businesses alike, and that’s what makes its stock so valuable.
Competitors offering the same services often have higher prices, so they never manage to outsell DigitalOcean. Naturally, the more people who hire this company and invest in its services, the better its stock does on the market. What makes this company so successful is that it keeps everything simple for everyone to understand how it works.
Is NYSE: DOCN a Good Investment in 2022?
The short answer is yes since 2022 may be the best time to invest in DOCN for the following years. Why is that? Because DOCN is currently at a low, so it’s not as expensive as it will be in the future.
It’s not that it will be bad to buy DOCN in the future, but since its price will start to go up, it will be best to start thinking about selling it as time goes by. If investors wait a lot of time to buy DOCN, it may get way more expensive than it was in the first place.
<h3>What Factors Should People Consider When Predicting the Future of DOCN?</h3>
Predicting the market is not easy at all, but knowing what analysts consider when doing so helps you understand when paying for a stock is a safe investment or when you should start thinking about others. DOCN is not an exception to that.
The first thing to know about stocks is how they did in the past, and that includes their share price, revenue growth rate, EPS, and volatility. Those factors are also essential when studying the path a stock follows on the market. Firstly, the revenue rate and share price of a stock tell you how that stock may do in the future.
It’s also important to know the pessimistic and optimistic predictions of DOCN since they show how bad it will be to invest in it if the worst happens and what the best possible outcome for you is.
Volatility is also something you should think about when investing in any digital asset out there. The market is highly volatile, and all the assets on it can be more or less stable. Regardless of that, DOCN has never been a volatile stock.
Will NYSE: DOCN Be a Decent Buy in 2030?
Everything depends on how you see it, but some analysts think this stock won’t be a decent buy in 2023. The reason for this is not that it will be in a bad position or that it won’t be valuable but rather that it will be a better moment to sell your stocks rather than buy them.
Regardless of that, even if you get it for an expensive price, it’s never a bad thing to get a stock, as long as it has a decent forecast for the following years.