This Unstoppable Growth Stock Soared 500% in the Last 12 Months, but Wall Street Expects Limited Upside From Here
DigitalOcean's revenue growth is accelerating, but its stock has gotten ahead of itself.
This Unstoppable Growth Stock Soared 500% in the Last 12 Months, but Wall Street Expects Limited Upside From Here
Overview
The cloud computing industry is dominated by Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud. These three platforms, which between them control more than 60% of the cloud infrastructure market, offer hundreds of services to help businesses thrive in the digital age, but they also provide customers with the tools to develop and deploy artificial intelligence (AI) software, from computing capacity to ready-made AI models.
DigitalOcean (NYSE: DOCN) is another cloud provider that specifically targets small- and medium-sized businesses (SMBs), which has become an extremely valuable segment of the market. It offers a growing portfolio of affordable solutions to help such customers unlock the power of AI, and demand is currently through the roof.
Details
DigitalOcean stock has exploded higher by 500% over the last 12 months, but the average price target among the analysts tracked by The Wall Street Journal suggests further upside might be limited.
Source
Originally published at www.fool.com.
