DigitalOcean (NYSE: DOCN) took investors on a wild ride after its initial public offering (IPO). The small-scale cloud infrastructure services provider went public at $47 on March 24, 2021, but its stock opened at just $41.50 before ending its first day at $42.50.

However, the subsequent buying frenzy in growth and meme stocks propelled DigitalOcean's stock to an all-time high of $130.26 on Nov. 16, 2021. At its peak, its enterprise value reached $13.6 billion -- or 24 times the revenue it would generate in 2022. That bubbly valuation was unsustainable and burst as rising rates crushed speculative growth stocks.

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Source Fool.com