DigitalOcean

DOCN

Market cap $4.07B

CNBC's "Closing Bell" team discusses the setup for stocks going into year-end with Tom Lee of Fundstrat.

Paddy Srinivasan, CEO of DigitalOcean (DOCN), talks about how his company's recent earnings and the role cloud plays in business growth. He labels an addition of $1 million-plus customers and A.I.

DigitalOcean's latest results make it clear that the company's focus on providing affordable AI compute and software development is paying off. The company's growth rate is improving thanks to higher spending by existing customers and the addition of new customers.

DigitalOcean provides cloud computing services to small and mid-sized businesses, and it's aggressively entering the AI space. The company's AI revenue has more than doubled for five consecutive quarters, fueled by a rapid increase in high-spending customers.

The AI trade, as it relates to the DOCN stock price, is not only strong but also gaining momentum, signaling a shift in the tide for this mid-cap market. With shares near long-term lows in Q4, the upside potential is tremendous.

DigitalOcean beat expectations in the third quarter as artificial intelligence (AI) revenue boomed. The company is winning with larger customers as its AI platform matures.

AI and the cloud go together like peanut butter and jelly.

DigitalOcean Holdings, Inc. ( DOCN ) Q3 2025 Earnings Call November 5, 2025 8:00 AM EST Company Participants Melanie Strate Padmanabhan Srinivasan - CEO & Director Matt Steinfort - Chief Financial Officer Conference Call Participants Gabriela Borges - Goldman Sachs Group, Inc., Research Division Radi Sultan - UBS Investment Bank, Research Division Josh Baer - Morgan Stanley, Research Division William Kingsley Crane - Canaccord Genuity Corp., Research Division James Fish - Piper Sandler & Co., Research Division Matthew Calitri - Needham & Company, LLC, Research Division Mark Zhang - Citigroup Inc., Research Division Wamsi Mohan - BofA Securities, Research Division Robert Galvin - Stifel, Nicolaus & Company, Incorporated, Research Division Presentation Operator Thank you for standing by. My name is Rebecca, and I will be your conference operator today.

While the top- and bottom-line numbers for DigitalOcean (DOCN) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

DigitalOcean (NYSE: DOCN) reported Q3 2025 earnings on Oct.