Is DigitalOcean Stock Still a Top Cloud Stock Buy After Crashing?
DigitalOcean (NYSE: DOCN) was one of a few high-flying tech companies to recently receive a dubious honor: a stock crash of more than 20% following its second-quarter earnings announcement. To be fair, a number of items conspired against the cloud service provider this quarter, and investors aren't wrong to turn a skeptical eye toward the company after what had been a near-doubling in stock price so far in 2023.
But for those who were looking for the right time to get in, is this the opportunity to scoop up DigitalOcean stock you were waiting for?
Let's start with the good stuff. DigitalOcean reported year-over-year revenue growth of 27% to $170 million in the second quarter. The company's adjusted free cash flow came in at $45 million, a 27% profit margin, and above the full-year 2023 target of 21% to 22% for adjusted free-cash-flow margin.
Source Fool.com
