Nobody Has Heard Of It And Nobody Cares (DOCN Q1 FY12/24 Earnings Review)
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Digital Ocean Q1 FY12/24 Earnings Review
As everyone knows, in hosting you can't compete with Google, Amazon, Microsoft, et al, because hyperscale. Ergo any company that tries to do so is merely tilting at windmills and is to be avoided at all costs, because monopoly rents.
Well, maybe.
The thing is, Digital Ocean ($DOCN) which does compete with all the bigs in hosting, doesn't much offer anything you can't buy from all those folks, and yet appears to be (1) growing nicely (2) cash generative and (3) all in all a pretty nice business on fundamentals.
How, you may ask? Well, they basically sell techie stuff to techies. If you have to ask what Kubernetes is or you think a container is where you toss your old USB drives, they probably won't return your call. If you just want to store your German Shepherd videos, most likely $BOX has everything you need already. But a pure focus on technical customers appears to be paying off.
Below we lay out the fundamental financials, valuation metrics, our stock rating and price targets. Read on!