DigitalOcean Shares Plunge 7.92% Amid Earnings Guidance Update

DigitalOcean (DOCN) shares plummeted 7.92% today, marking the fourth consecutive day of decline, with a total drop of 26.37% over the past four days. The stock price hit its lowest level since November 2023, experiencing an intraday decline of 9.56%.

DigitalOcean recently updated its FY25 earnings guidance, projecting an EPS range of $1.85 to $1.95. This update is expected to shape investor expectations and influence the stock price based on the anticipated financial performance. The company also reported a 13% increase in revenue and improved customer retention, which are positive indicators of its financial health and could contribute to a more favorable stock price movement.

Analyst Mike Cikos from Needham maintained a neutral stance with a Hold rating on April 2, reflecting cautious investor sentiment and suggesting potential stabilization in the stock's movement. This rating indicates that while there may be concerns about the company's short-term performance, the stock could see a period of stability or modest growth in the near future.