13 Best Cloud Computing Stocks to Invest in Now

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11. DigitalOcean Holdings, Inc. (NYSE:DOCN)

Number of Hedge Fund Holders: 20

DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the Best Cloud Computing Stocks to Invest in Now. On August 6, Canaccord upped the price target on the company’s stock to $49 from $45, while keeping a “Buy” rating, as reported by The Fly. As per the firm, DigitalOcean Holdings, Inc. (NYSE:DOCN) delivered Q2 2025 results with continued robust top-line momentum aided by favourable demand signals throughout the business, with 70+ competitive cloud migrations and AI/ML revenue more than doubling YoY.

In Q2 2025, DigitalOcean Holdings, Inc. (NYSE:DOCN)’s total revenue saw an increase of 14% YoY, and it achieved the highest incremental ARR since Q4 2022.  DigitalOcean Holdings, Inc. (NYSE:DOCN) has been effectively balancing increased growth and attractive FCF margins. Notably, its adjusted FCF amounted to $57 million at a 26% margin. DigitalOcean Holdings, Inc. (NYSE:DOCN) raised full-year revenue guidance to $888 million to $892 million. DigitalOcean Holdings, Inc. (NYSE:DOCN)’s remaining performance obligation amounted to $53 million as compared to $3 million in Q2 2024.

Frontier Capital Management, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“The market volatility has created several opportunities to invest in companies at prices we find attractive, and thus we have initiated new positions in a variety of industries. Examples include CACI International Inc Amentum Holdings, Inc., Essential Properties Realty Trust, Inc., and DigitalOcean Holdings, Inc. (NYSE:DOCN). DigitalOcean’s new CEO has increased investment in its service offering, which should enable the company to grow its share of wallet and reduce churn in the customer base. As use cases for AI develop, we expect more developers will use DigitalOcean’s services to build their businesses in a more cost effective manner, driving increasing earnings for years to come.”

DigitalOcean Holdings, Inc. (NYSE:DOCN) operates a cloud computing platform.

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