DigitalOcean Jumps to 4-Year High After Oppenheimer Lifts Target to $100

Overview

• Shares hit an intraday peak of $86.45 and closed up 6.3% at $82.48, marking a fourth straight gain.
• Oppenheimer reaffirmed its outperform rating and now models potential revenue of $5.5 billion with a 24–25% free cash flow margin by 2035.
• The firm highlights DigitalOcean’s focus on AI‑optimized services, estimating that segment is growing at a 110% CAGR versus 25% for the broader IaaS market.
• Capacity is projected to reach about 136 MW by the end of 2028, up from roughly 44 MW at the end of 2025, a ~209% increase.
• DigitalOcean’s 2025 results showed revenue of $901 million, up 15.5% year over year, with net income rising to $259 million from $84 million.