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Why is DigitalOcean stock dropping?

Last updated on September 25, 2022 @ 2:27 pm

DigitalOcean is a cloud computing provider that offers a range of services, including cloud storage, domain registration, and web hosting. It has a market cap of $1.

1 billion and is ranked #919 on the Fortune 500 list.

DigitalOcean has been experiencing a decline in stock prices over the past few months. The company’s stock price has fallen by 10% since the beginning of the year. DigitalOcean’s decline can be partially attributed to a slowdown in the cloud computing industry, but it is also likely due to worries about the company’s debt. In February, DigitalOcean announced that it had raised $85 million in debt financing.

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The company’s debt load is now $1.4 billion, which is significantly higher than its cash and short-term investments.

DigitalOcean’s debt load is a significant concern, but the company’s other operations appear to be healthy. In its most recent earnings report, DigitalOcean reported revenue of $128 million, which was up from $116 million in the previous year.

The company’s net income was also higher, at $14 million compared to $12 million in the previous year. DigitalOcean’s decline in stock prices may be a short-term phenomenon, but the company’s debt load and slow growth rates are long-term concerns.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.