I’m looking into the cloud computing side of my portfolio and my screener came across the above company.
I’m of the understanding that DigitalOcean is in a niche side of the cloud industry with their products targeted towards small/medium sized businesses leaving the rest to Microsoft’s Azure, Amazon’s AWS and Google’s GCP. That is some colossal competition which begs the question – how can DigitalOcean compete?
They recently acquired the cloud infrastructure and software startup – Paperspace. The key wording passed around was that the acquisition gave Digital Ocean additional access to very useful AI tools that they could expand to their customers. The rough estimations are that DigitalOcean paid circa $110 million in straight cash with no dilution.
Looking at their financials, they are making profit which is a significant benefit in this economic climate. Revenues have been steadily increasing also. I’ve still to take a deep dive into their finances but so far they are looking attractive for a small allocation in my portfolio.
An interesting acquisition alongside decent financials, we will need to see future guidance with their upcoming earnings this Thursday (08/03/2023).
Can anyone share their thoughts on DigitalOcean- bullish/bearish views?
Any experts/daily users of their software and hosting sites that can provide some insight/opinions?
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