Is DigitalOcean Stock a Buy Now?
When discussing cloud infrastructure companies, it's common to think about the three giants: Amazon Web Service (AWS), Microsoft Azure, and Alphabet's Google Cloud. However, these companies only focus on the largest customers, as they provide the largest contracts. But what about the little guy?
DigitalOcean (NYSE: DOCN) is that company. It is specifically tailored to help "developers, start-ups, and small and medium-sized businesses (SMBs) rapidly build, deploy, and scale applications." By focusing on small businesses, DigitalOcean has a massive market in front of it; but is the stock a buy?
Fledgling businesses usually focus on surviving, meaning every expense should be optimized. On-premise computing is expensive and is often outdated within years of purchase. By running applications on the cloud, developers can avoid this expense while simultaneously gaining the ability to access powerful computational power.
Source Fool.com
