DigitalOcean Holdings shares are trading higher Tuesday after the company reports strong second-quarter 2025 financial results and raises its full-year guidance.
Cloud computing provider DigitalOcean (NYSE: DOCN) announced better-than-expected revenue in Q2 CY2025, with sales up 13.6% year on year to $218.7 million. Guidance for next quarter’s revenue was better than expected at $226.5 million at the midpoint, 1.4% above analysts’ estimates. Its non-GAAP profit of $0.59 per share was 26.2% above analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after the Software as a Service (SaaS) sector rebounded following the sell-off in the previous trading session as a weaker-than-expected U.S. jobs report increased the probability of a Federal Reserve interest rate cut. The July Nonfarm Payrolls (NFP) report showed the U.S. economy added only 73,000 jobs, significantly below the 110,000 forecast. This, combined with downward revisions for May and June, signaled a cooling labor market to investors. In response, market expectations for a September interest rate cut by the Federal Reserve surged from roughly 40% to over 80%. A potential rate cut is generally favorable for growth sectors like technology and SaaS, as lower rates can increase the present value of their future earnings, boosting stock valuations.
Cloud computing provider DigitalOcean (NYSE: DOCN)
will be announcing earnings results this Tuesday before market hours. Here’s what investors should know.
A number of stocks fell in the morning session after the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at data storage stocks, starting with MongoDB (NASDAQ:MDB).
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how DigitalOcean (NYSE:DOCN) and the rest of the data storage stocks fared in Q1.
