Why DigitalOcean Stock Rallied 16% This Week
Shares of DigitalOcean (NYSE: DOCN), a provider of simplified cloud computing, had risen 16% this week as of 1 p.m. ET on Friday, according to data provided by S&P Global Market Intelligence. Since reporting earnings on Aug. 8, DigitalOcean's stock has rallied 29%.
The company thoroughly beat expectations with its second-quarter earnings, and it highlighted a handful of developments in the artificial intelligence (AI) space that have the market continuing to push the company's price higher.
DigitalOcean's cloud computing solutions are designed with small and medium-size enterprises (SMEs) in mind. These clients make up the vast majority of the company's customer base. They flock to DigitalOcean instead of the hyperscalers because of the simplicity, affordability, premium support, and reliability it offers.
Source Fool.com
