Why DigitalOcean Stock Is Catching a Big Bullish Wave Today
Shares of DigitalOcean Holdings (NYSE: DOCN) are up 14.2% as of 2:40 p.m. ET today, according to numbers from S&P Global Market Intelligence. The surge follows Thursday's post-close release of the company's second-quarter results. Not only did the small technology outfit top estimates, but it also reminded investors of just how resilient its business is.
DigitalOcean's business isn't complicated. The company offers cloud computing solutions, alongside a slew of other providers. It is different than most of those other outfits, however, in that it specializes in meeting the needs of smaller customers that may wish to first experiment with the technology on a small scale, and then expand their cloud computing operation as the need grows.
The differentiated model is clearly working. Last quarter's revenue of $192.5 million was up 13% year over year despite economic headwinds, topping estimates of around $188.6 million. Per-share earnings of $0.48 beat the consensus of $0.39, improving on the year-ago comparison of $0.44 per share.
Source Fool.com
