DigitalOcean Holdings (NYSE:DOCN) shares have seen a significant 29% increase in the last month, contributing to a 53% rise over the past year. Despite a high Price-to-Earnings (P/E) ratio of 24.8x compared to the market average, the company boasts superior earnings growth, with EPS increasing by 203% last year. However, analysts forecast a 54% decline in earnings over the next year, raising concerns that the current high P/E ratio may not be sustainable given the negative growth outlook.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
DigitalOcean Holdings, Inc. (NYSE:DOCN) Stock Rockets 29% As Investors Are Less Pessimistic Than Expected
DigitalOcean Holdings (NYSE:DOCN) shares have seen a significant 29% increase in the last month, contributing to a 53% rise over the past year. Despite a high Price-to-Earnings (P/E) ratio of 24.8x compared to the market average, the company boasts superior earnings growth, with EPS increasing by 203% last year. However, analysts forecast a 54% decline in earnings over the next year, raising concerns that the current high P/E ratio may not be sustainable given the negative growth outlook.