DigitalOcean (NYSE:DOCN) shares dropped 9% today. Volume was more than double normal.
It’s been a rough season for DO. Shares today traded for as cheap as $59/share – well off the stock’s highs above $130/share only two months ago.
The reason for the plummeting valuation is not clear. Some possibilities:
- DigitalOcean was overpriced. It may still be overpriced. The company is losing 28 cents a share on a 6.3B market cap.
- Investors generally loathe the “take on debt to buy back stock” approach to financial engineering. It’s generally a cash out option that rewards owners at the expense of the long-term health of the company. DigitalOcean announced this move recently.
- Motley Fool speculates it’s a reaction to announced Amazon and Microsoft moves in the cloud space.
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Latest posts by raindog308 (see all)
Their network is constantly attacking my VPS’es and dedicated server. They could care less, forget reporting the IP to them.
Few years back I tried to redeem a coupon. It was like the 5th degree to get it through.
Good for quick dev deployment, but about all I would use them for.
Shame me for telling the truth, sometimes the truth hurts :)