DigitalOcean rises after boosted $800 mln stock sale

DigitalOcean Holdings

25/03/2026 15:52

Updates stock activity, adds context

** AI cloud platform DigitalOcean's DOCN.N shares reverse early losses and last up 1.2% at $85.90 on Weds after securing above-target equity raise

** DOCN shares rise as much as 3% to $87.50

** Co early Weds announced pricing offering of ~10.4 mln shares for approx $800 mln gross proceeds, up from planned $700 mln

** Offering price of $77 represents 9.3% discount to stock's last sale on Tues

** Co, which has 92 mln shares outstanding, to use net proceeds to invest in additional infrastructure capacity, pay down term loan, and for general purposes

** JP Morgan, Morgan Stanley and BofA joint bookrunners, joined by Goldman Sachs, Citizens Capital Markets and MUFG

** Broomfield, Colorado-based DOCN on Feb 24 reported Q4 rev increased 18% y/y to $242.4 mln, topping LSEG consensus, and hiked 2026 and 2027 rev outlook citing growing AI traction

** With move on the session, stock up ~78% YTD including ~53% gain this month

** Avg rating of 14 analysts is "buy"; median PT $76.50, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))