Why DigitalOcean Stock Was Underwater This Week
Shares of DigitalOcean (NYSE: DOCN) were pulled under this week, falling as much as 26.2%. As of market close on Thursday, the stock was still down 25.5%.
The catalyst that sent the cloud computing specialist lower was increasingly bearish analyst sentiment, as evidenced by multiple downgrades and lower price-target revisions.
First up this week was Morgan Stanley analyst Josh Baer, who downgraded DigitalOcean to underweight (sell) from equal weight (hold), according to The Fly. Baer also poured salt on the wound by lowering the stock's price target to $45, down from $61, which was below the stock's closing price last week. Baer cited evidence of a slowdown in software spending and DigitalOcean's dependence on small businesses, which will likely suffer more if the specter of recession becomes a reality.
Source Fool.com
