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.
Related Posts:
Will Dropbox Survive to 2030, or Is the End in Sight?
DigitalOcean Unveils NVIDIA H100-Powered Flexible GPU Droplets for Enhanced Performance
Google is Building a Datacenter in...um, Where...?!?
DigitalOcean Enhances Security with New Role-Based Access Control Features
Tucows Q2 2024 Financial Results: The Struggle Continues
I Gave Two Friends Advice on a Cheap VPS and Now I'm on the Hook if Anything Goes Wrong
Dread Lord of LowEnd Content at LowEndBox
I'm raindog308, techno polymath and long-time LowEndTalk community Administrator. My technical interests include all things Unix, perl, python, golang, shell scripting, vintage operating systems such as MVS, and relational database systems such as Oracle, PostgreSQL, and MySQL.
I also enjoy using LEBs! I have an empire of little guys for VPNs, larger guys for apps, and big guys for databases and storage. When I'm not in front a screen I'm into German Shepherd dogs, quality knives, target shooting, theology, tabletop roleplaying games, and forest hiking.
I enjoy writing technical articles here on LowEndBox to help people get more out of their systems. You can find me on LowEndTalk @raindog308
I also enjoy using LEBs! I have an empire of little guys for VPNs, larger guys for apps, and big guys for databases and storage. When I'm not in front a screen I'm into German Shepherd dogs, quality knives, target shooting, theology, tabletop roleplaying games, and forest hiking.
I enjoy writing technical articles here on LowEndBox to help people get more out of their systems. You can find me on LowEndTalk @raindog308
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 :)