Is It Too Late to Buy DigitalOcean Stock?
Since bottoming out a few months ago, shares of small cloud-computing platform DigitalOcean (NYSE: DOCN) have been on a tear. The stock is up some 50% since mid-May, rallying along with other tech stocks and the market overall on hopes that the bear market of 2022 might be nearing an end.
DigitalOcean's second-quarter earnings report certainly helped with this rally, too. Business isn't perfect right now as the global economy slows and the risk of a recession still looms, but DigitalOcean is proving it's a resilient operation even in difficult times. Is it too late to buy the stock after the last few months' rally?
DigitalOcean's Q2 revenue growth came in at a 29% year-over-year pace to $134 million, the midpoint of guidance provided three months ago. It was a cool-off from the 36% rate of top-line growth reported in the first quarter. Like just about everyone else, DigitalOcean is being affected by a slowing economy, customers scaling back slightly on their spending as they deal with inflation, and the U.S. dollar's record run-up against most other foreign currencies.
Source Fool.com
