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DigitalOcean (DOCN) Hits All-Time High on Stellar Revenues, Upbeat Q2

DigitalOcean Holdings Inc. (NYSE:DOCN) is one of the 10 Stocks Turning Heads With Double-Digit Gains.

DigitalOcean extended its winning streak to a third straight session on Tuesday, to hit a new all-time high, as investors took heart from its stellar revenue performance and a highly optimistic outlook for the second quarter of the year.

At intra-day trade, the stock climbed to its highest price of $153.47 before paring gains to finish the session just up by 40.40 percent at $152.77 apiece.

Photo by Tima Miroshnichenko on Pexels

In a statement, DigitalOcean Holdings Inc. (NYSE:DOCN) said that it raked in $257.9 million in revenues for the first three months of the year, marking a 22.4 percent jump from the $210.7 million in the same period a year earlier.

However, net income attributable to shareholders fell by 58.7 percent to $15.77 million from $38.2 million.

Looking ahead, DigitalOcean Holdings Inc. (NYSE:DOCN) is targeting its revenues for the second quarter of the year to grow by 24 to 25 percent to a range of $272 million to $274 million. For the full-year period, revenues are expected to soar by 25 to 27 percent to a range of $1.13 billion to $1.145 billion.

“The Inference and agentic era needs its own cloud. DigitalOcean built it, and our record Q1 results demonstrate the strength of our platform,” DigitalOcean Holdings Inc. (NYSE:DOCN) CEO Paddy Srinivasan said, noting that it exceeded its revenue and profitability guidance.

“We continue to invest in what we believe is a generational market opportunity, adding approximately 60 MW of incremental committed data center capacity that will come online throughout 2027 to support growing customer demand,” he noted.

While we acknowledge the risk and potential of DOCN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DOCN and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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