When DigitalOcean (NYSE: DOCN) went public two years ago, many investors were skeptical of its strategy of providing cloud infrastructure platform services to small and medium-sized businesses. After all, the market was already dominated by cloud behemoths like Amazon Web Services (AWS).

That's why DigitalOcean started trading at $41.50 on its first day, which was about 12% below its initial public offering (IPO) price of $47. Its stock soared to an all-time high of $130.26 at the peak of the buying frenzy in growth stocks in November 2021, but it subsequently slid back to about $46.

DigitalOcean's roundtrip back to its IPO price was disappointing, but its business has actually been growing at a healthy clip. Revenue rose 25% in 2020, 35% in 2021, and 34% to $576 million in 2022. The company expects revenue to rise another 22% to 25% this year, even as macroeconomic headwinds force many companies to rein in their cloud spending.

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Source Fool.com