"DO or DO Not, There is No Try" | Positive Pre-Announcement on Large AI Demand

研报英文原文证据摘录

"DO or DO Not, There is No Try" | Positive Pre-Announcement on Large AI Demand

C O M PA N Y N O T E

J u l y 7 , 2 0 2 6

DigitalOcean Holdings, Inc. (DOCN) Neutral

CONCLUSION PRICE: US$131.37

DigitalOcean pre-announced Q2 unsurprisingly to the upside, while also calling out larger TARGET: US$155.00

& longer AI-related deals and an incremental 20 MWs of capacity coming online in late '27 / ~13x EV/CY27E Sales of $1.8B (including

early '28. Shares are currently up ~5% on the news, though have faded since the opening, 136M s/o and $1.7B net-debt)

with many asking "why now?". We see 3 reasons for this: 1) With the share price down

~20% over the last month given competitive announcements, GPU pricing concerns, and James Fish

Sr. Research Analyst, Piper Sandler & Co.

AI ROI concerns, mgmt. wanted to stabilize shares; 2) the large deals and added capacity 612 303-6509, james.fish@psc.com

are a material change; 3) DigitalOcean may need financing for this build given cash-burn, Ryan Abbott

including equity financing to stay at ~4x leverage. We have adjusted our estimates to reflect Research Analyst, Piper Sandler & Co.

the announcement, and while we are fans of the space and current execution, we await a 503 351-5391, ryan.abbott@psc.com

better entry point and prefer others in the space. Timothy Shubsda

Research Analyst, Piper Sandler & Co.

• Pre-Announcement: Ahead of the market open, DigitalOcean 'positively' pre- 716 461-2680, timothy.shubsda@psc.com

announced. For 2Q26, DigitalOcean estimates ~29% Y/Y growth vs. ~25% prior guide, Changes Previous Current

with EBITDA margin and EPS coming in at to above prior guide, too. This is not a surprise Rating — Neutral

to many given the numbers setup, particularly on the profitability / EPS side. 2026 will Price Tgt — US$155.00