Is It Too Late to Buy DigitalOcean Stock?
DigitalOcean's (NYSE: DOCN) stock plunged 25% on Aug. 4, after the cloud infrastructure services provider posted a messy second-quarter earnings report. Its revenue rose 27% year over year to $170 million, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 59% to $72 million.
Its revenue matched its own guidance, and its adjusted EBITDA margin of 43% easily surpassed its prior outlook of 37%-38%. However, two issues triggered DigitalOcean's ugly post-earnings sell-off: accounting errors that prevented it from reporting its net income and earnings per share by generally accepted accounting principles (GAAP) and non-GAAP terms, and a big reduction to its 2023 guidance. Let's review those red flags and see if it's too late to buy DigitalOcean's stock.
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Source Fool.com
