I Recently Predicted That DigitalOcean Would Become a Multibagger By Next Year, and It Surged 40% After Its Earnings Report.
Is This AI Stock Still a Buy?
Shares of cloud computing company DigitalOcean (NYSE: DOCN) shot up by 40% on May 5 after the company released terrific results for the first quarter of 2026, and anyone following the company’s business model may not be entirely surprised by this big pop. In fact, it was just a few days ago that I predicted DigitalOcean stock could become a multibagger by the end of 2026. So, it was easy to see why investors piled into this cloud stock after it posted a significant surge in AI revenue last quarter and raised its 2027 guidance.
Let’s take a closer look at what’s working for DigitalOcean and check if this high-flying tech stock has room for more upside. AI has supercharged DigitalOcean’s growth DigitalOcean operates an on-demand cloud computing platform, primarily serving start-ups, developers, and small businesses. The company’s focus on making it simpler and cheaper for smaller enterprises to deploy and scale AI applications in the cloud explains why demand for its AI offerings is growing.