Shares of cloud computing provider DigitalOcean (NYSE: DOCN)
fell 14.5% in the afternoon session after the company reported weak first quarter 2025 results which included significantly missed EPS guidance for next quarter and full-year revenue guidance merely in line with expectations. On the other hand, DigitalOcean beat analysts' EBITDA expectations this quarter and net revenue retention grew. Still, this was a mixed quarter.
Cloud computing provider DigitalOcean (NYSE: DOCN) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 14.1% year on year to $210.7 million. The company expects next quarter’s revenue to be around $216.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.56 per share was 26.3% above analysts’ consensus estimates.
Shareholders of DigitalOcean would probably like to forget the past six months even happened. The stock dropped 25.7% and now trades at $30.61. This may have investors wondering how to approach the situation.
A number of stocks jumped in the afternoon session after stocks extended their rebound, led by strong gains in the technology sector, as renewed optimism surrounding U.S.–China trade negotiations lifted investor sentiment.
A number of stocks jumped in the afternoon session after President Trump clarified that he had no intention of removing Federal Reserve Chair Jerome Powell, a statement that helped calm markets. Earlier remarks had sparked fears of political interference in decision-making at the central bank.
With Trump walking back his earlier comments, investors likely felt more assured that monetary policy decisions would continue to be guided by data, not drama. That kept the Fed's word credible, and more importantly, gave investors a steadier compass to figure out where rates and the markets were headed next.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Commvault Systems (NASDAQ:CVLT) and its peers.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Couchbase (NASDAQ:BASE) and its peers.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at DigitalOcean (NYSE:DOCN) and the best and worst performers in the data storage industry.
