DOCN Stock plummets over 3%—Is Market Volatility Responsible?

The public cloud service adoption rate is 91%, and private cloud adoption is just 30%.
DigitalOcean will launch its quarter four earnings before February 16, 2023.

DigitalOcean Holdings Inc. is an American multinational company and a world-class cloud service provider. The company was established in 2014 and is headquartered in New York, United States.

At press time, Nasdaq: DOCN stock was trading at $29.06 and descended 3.26% compared to the closing prices of the last trading session.DigitalOcean has a total market capitalization of 2.80B U.S dollars.

Recently the company announced that it is supposed to release its quarter 4 earnings before the market opens on February 16th, 2023. The company reported this quarter’s $0.16 earnings per share(EPS).

In the first quarter, DigitalOcean’s total revenue was $127.33M, from which the net income was negative 18.12M USD, and in the second quarter, total revenue was $133.88M, from which the net income was negative 6.19M USD.

The third quarter’s revenue improved and was $150M from a net income was $10.10m.The yet-to-be-announced financial statement of the fourth quarter will surely affect the movement of DOCN stock in the next few weeks.

Cloudways, CSS Tricks, Nimbella and Nano, are among the major acquisitions of DigitalOcean Holdings. Moreover, the cloud service provider is funded by 33 investors, including Andreessen Horowitz, Mighty Capital, Da Vinci Capital, and others.

According to Crunchbase, DigitalOcean is ranked 5642 among all websites globally, and the website’s monthly visitors are 18,435,155. Most website users are from the United States, India and Germany.

DOCN has 15 data centers in 185 countries and serves around 600K individual and institutional customers. The stock price of DOCN may improve after the release of quarter four financial reports.

As of now, the stock prices of DOCN have sunk by 11.19% in the trading session of the last seven days. The projected annual revenue of DOCN will surge by 40%.

In an SEC filing IA Venture Strategies Fund II, LP has revealed that it holds 7,404,482 shares of DigitalOcean which means IA Ventures holds 7.70% ownership of the company.

Barclays PLC recently disclosed that they increased their stake in DigitalOcean cloud service provider. Some leading cloud service providers globally are Amazon Web Services, Microsoft Azure, Google Cloud, Oracle Cloud and Tencent cloud.

Cloud technology is emerging rapidly and can cause a dramatic decrease in labor and maintenance costs because the company is required to purchase or maintain the infrastructure. Security, Downtime, Interoperability, Vendor lock-in and management of multi-cloud environments are some of the major challenges of using cloud computing.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing