How Much Higher Can DigitalOcean Stock Go?
DigitalOcean (NYSE: DOCN) provides a suite of affordable cloud computing services exclusively to small and medium-sized businesses (SMBs). That was already a lucrative business model, but the company is now also helping its customers deploy artificial intelligence (AI) software, and demand is through the roof.
The company's revenue growth accelerated last year, propelling its stock to a 41% gain. But it's up by a further 77% in 2026 already, as investors anticipate a continued surge in businesses' appetite for AI-related computing capacity. In fact, DigitalOcean recently announced plans to raise $800 million from investors to build more data center infrastructure.
Despite its recent gains, the stock is still trading at a relatively attractive valuation. So, how much higher can it go from here?
Source Fool.com
