We recently published a list of Billionaire George Soros’ 10 Small-Cap Stocks with Huge Upside Potential. In this article, we are going to take a look at where DigitalOcean Holdings, Inc. (NYSE:DOCN) stands against Billionaire George Soros’ other small-cap stocks with huge upside potential.
When a legendary investor like George Soros makes a move, Wall Street pays attention. However, most of the limelight is taken by mega-cap stocks, with no one paying heed to the many small-cap stocks that form an important part of Soros’ portfolio.
Digging out these small-cap stocks is important. In some cases, these are the mega-cap stocks of the future. In other cases, these provide amazing returns in a very short period of time. The key is to get in early. And what better way to get in early than to do it when the big guys do.
We therefore decided to compile a list of stocks in billionaire George Soros’ portfolio that have the most upside. To come up with our list of billionaire George Soros’ 10 Small-Cap stocks with huge upside potential, we first looked at his top 50 stock holdings. We then filtered out the companies to look at only the ones with a market cap below $10 billion.
After arriving at his top small-cap holdings list, we then looked at the median analyst price targets on those stocks and then ranked them by their upside potential.
A close up view of a laptop computer, the cloud computing platform displayed on the screen.
DigitalOcean Holdings, Inc. (NYSE:DOCN)
DigitalOcean Holdings, Inc. (NYSE:DOCN) operates a cloud computing platform. It offers on-demand platform tools and infrastructure for developers at growing tech firms. The company also provides infrastructure-as-a-service (IaaS) solutions, platform-as-a-service (PaaS) solutions, software-as-a-service (SaaS) solutions, and IP address management and domain name system management. According to the median analyst price target, the stock still has an upside of 64.92%.
The firm’s product innovation has accelerated over the past few quarters. It increased its product launches from 42 in Q3 2024 to 49 in Q4 2024. As per the guidance, 50+ product launches are expected in the first quarter of 2025. In addition to product innovation, the company’s AI opportunity presents an impressive growth potential. It’s recently launched GenAI platform could be a game changer.
Based on DigitalOcean (NYSE:DOCN)’s outlook in machine learning and artificial intelligence, Morgan Stanley upgraded the firm at the beginning of this year from Equal-Weight to Overweight with an increased price target of $41. Later on, Citi also initiated coverage of the stock with a Buy rating and a $45 price target.
Analyst Josh Baer mentioned:
“DigitalOcean’s larger customers are demanding more product capabilities and the company is delivering.”
Based on analysts’ optimism, DOCN’s prospects look promising.
Overall, DOCN ranks 6th on our list of Billionaire George Soros’ small-cap stocks with huge upside potential. While we acknowledge the 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DOCN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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