Why DigitalOcean Is a Top Pick for the Next Bull Market
DigitalOcean Holdings (NYSE: DOCN) is a cloud computing company that provides Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) solutions. IaaS gives users computing, storage, and networking resources, while PaaS provides a platform for developers to build and deploy applications.
The company designs its cloud services to be easy to use and affordable for small developer teams and small and medium-size businesses (SMBs). Therefore, its business is highly dependent on the financial health of companies of this size.
And it uses a consumption-based business model, which means that its customers only pay for the services they use. This model can be risky during a downturn in the economy as developers and SMBs might use fewer services to conserve cash, hurting DigitalOcean's financial performance. Investors feared these factors would significantly dent its revenue growth in 2022, contributing heavily to the company's stock price decline last year.
Source Fool.com
