Why DigitalOcean Stock Jumped Today
Shares of cloud-computing company DigitalOcean (NYSE: DOCN) jumped on Wednesday, getting a boost from investors extrapolating positive results from Amazon. Moreover, the company is getting some recognition by being added to a prominent stock index. As of 12:10 p.m. ET, DigitalOcean stock was up 8%.
DigitalOcean stock has essentially traded sideways over the past year because its growth is slowing considerably -- management only guided for about 10% year-over-year revenue growth in 2024. However, investors use Amazon's AWS cloud-computing platform as a barometer for how this space is doing. And investors like what they see today.
AWS just reported 25% year-over-year revenue growth in the first quarter of 2024 -- a hearty increase from its 13% growth in 2023. CEO Andy Jassy said growth was boosted by "companies renewing their infrastructure modernization efforts and the appeal of AWS's AI capabilities."
Source Fool.com
