Added to YB: 2025-09-25
Pitch date: 2025-08-07
DOCN [bearish]
DigitalOcean Holdings, Inc.
-40.18%
current return
Author Info
No bio for this author
Company Info
DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally.
Market Cap
$4.2B
Pitch Price
$34.00
Price Target
10.00 (-79%)
Dividend
N/A
EV/EBITDA
15.04
P/E
17.38
EV/Sales
6.45
Sector
IT Services
Category
special_situation
DigitalOcean Holdings, Inc. - $DOCN (short)
DOCN short: Cloud provider faces 60%+ downside from $1.5B convert refi (50% market cap), hidden related-party transactions w/ Access Industries obscuring China GPU sales, declining core business masked by acquisitions, negative real FCF despite mgmt claims of 16-18% margins, regulatory risk on China GPU loophole closure, material weaknesses in controls, C-suite exodus. Trading 4x sales vs peer OVH at 2.5x. Target ~$10.
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