Should You Really Buy DigitalOcean Stock Right Now?
If DigitalOcean (NYSE: DOCN) were a real ocean, it would be the Arctic -- it's a small player going up against Pacific Ocean-sized competitors like Amazon Web Services (AWS) and Google Cloud. To illustrate the magnitude of the competitive disparity, DigitalOcean hopes to generate $1 billion in revenue by 2024. For comparison, AWS has more than $100 billion in remaining performance obligations (RPO) under contract right now.
However, the ocean metaphor quickly breaks down. Whereas the Arctic is cold, DigitalOcean's business is red-hot. And it may just have what it takes to carve out its own lucrative spot in a market expected to be worth more than $1 trillion by 2030.
DigitalOcean provides cloud-computing services to small and medium-sized businesses (SMBs). But you may need to tweak your thinking on SMBs. We're not necessarily talking about corner bakeries and mom-and-pop landscaping outfits. We're more talking about SMBs like PlayKids, which makes educational mobile apps, and companies like Rockerbox that use data to help other companies make marketing decisions. Both are DigitalOcean customers.
Source Fool.com
