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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Raindog308 is a longtime LowEndTalk community administrator, technical writer, and self-described techno polymath. With deep roots in the *nix world, he has a passion for systems both modern and vintage, ranging from Unix, Perl, Python, and Golang to shell scripting and mainframe-era operating systems like MVS. He’s equally comfortable with relational database systems, having spent years working with Oracle, PostgreSQL, and MySQL.
As an avid user of LowEndBox providers, Raindog runs an empire of LEBs, from tiny boxes for VPNs, to mid-sized instances for application hosting, and heavyweight servers for data storage and complex databases. He brings both technical rigor and real-world experience to every piece he writes.
Beyond the command line, Raindog is a lover of German Shepherds, high-quality knives, target shooting, theology, tabletop RPGs, and hiking in deep, quiet forests.
His goal with every article is to help users, from beginners to seasoned sysadmins, get more value, performance, and enjoyment out of their infrastructure.
You can find him daily in the forums at LowEndTalk under the handle @raindog308.
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 :)