8 days ago
Fred Alger Management, an investment management company, released its "Alger Weatherbie Specialized Growth Fund" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a strong recovery in Q2 2026, with the S&P 500 Index gaining 15.2%, marking its best quarter since 2020. A ceasefire between the United States and Iran and accelerated investment in artificial intelligence (AI) regained market optimism in the quarter, leading the Information Technology and Industrials sectors upward, and Energy and Utilities lagged because of falling oil and gas prices. In June, the Federal Reserve maintained steady interest rates, but the meeting had a hawkish tone. As AI transitions into its agentic phase, opportunities are identified within sectors adopting the technology. The Weatherbie Specialized Growth Fund's Class A shares outperformed the Russell 2500 Growth Index in the quarter. The Industrials and Information Technology sectors contributed to the relative performance, whereas Financials and Consumer Discretionary sectors detracted. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Alger Weatherbie Specialized Growth Fund highlighted DigitalOcean Holdings, Inc. (NYSE:DOCN). DigitalOcean Holdings, Inc. (NYSE:DOCN) is a leading cloud infrastructure company that helps AI and Digital Native Enterprises build, run, and scale intelligent applications for growing technology companies. On July 20, 2026, DigitalOcean Holdings, Inc. (NYSE:DOCN) closed at $119.09 per share, reflecting a market capitalization of $13.92 billion. DigitalOcean Holdings, Inc. (NYSE:DOCN) posted a one-month return of -24.23%, while its shares gained 313.79% over the past 52 weeks.
Alger Weatherbie Specialized Growth Fund stated the following regarding DigitalOcean Holdings, Inc. (NYSE:DOCN) in its Q2 2026 investor update:
"DigitalOcean Holdings, Inc. (NYSE:DOCN) is a cloud infrastructure provider that offers computing, storage, networking, and related services to developers, startups, and businesses across multiple geographies. The company has differentiated itself through a simplified, developer-friendly platform and is increasingly positioning itself as a cloud provider purpose-built for inference and agentic AI workloads. We believe DigitalOcean is benefiting from the early stages of this demand cycle, as customers look for cloud infrastructure that is easier to use and better aligned with emerging AI applications. During the quarter, shares contributed positively to performance after the company delivered strong operating results and raised its revenue outlook for both 2026 and 2027. Investor sentiment was further supported by accelerating momentum in AI-related customer demand and the view that stronger fundamentals, rather than multiple expansion alone, helped drive the company's strong share price appreciation."
#digitalocean #holdings #docn #weatherbie
In its Q2 2026 investor letter, Alger Weatherbie Specialized Growth Fund highlighted DigitalOcean Holdings, Inc. (NYSE:DOCN). DigitalOcean Holdings, Inc. (NYSE:DOCN) is a leading cloud infrastructure company that helps AI and Digital Native Enterprises build, run, and scale intelligent applications for growing technology companies. On July 20, 2026, DigitalOcean Holdings, Inc. (NYSE:DOCN) closed at $119.09 per share, reflecting a market capitalization of $13.92 billion. DigitalOcean Holdings, Inc. (NYSE:DOCN) posted a one-month return of -24.23%, while its shares gained 313.79% over the past 52 weeks.
Alger Weatherbie Specialized Growth Fund stated the following regarding DigitalOcean Holdings, Inc. (NYSE:DOCN) in its Q2 2026 investor update:
"DigitalOcean Holdings, Inc. (NYSE:DOCN) is a cloud infrastructure provider that offers computing, storage, networking, and related services to developers, startups, and businesses across multiple geographies. The company has differentiated itself through a simplified, developer-friendly platform and is increasingly positioning itself as a cloud provider purpose-built for inference and agentic AI workloads. We believe DigitalOcean is benefiting from the early stages of this demand cycle, as customers look for cloud infrastructure that is easier to use and better aligned with emerging AI applications. During the quarter, shares contributed positively to performance after the company delivered strong operating results and raised its revenue outlook for both 2026 and 2027. Investor sentiment was further supported by accelerating momentum in AI-related customer demand and the view that stronger fundamentals, rather than multiple expansion alone, helped drive the company's strong share price appreciation."
#digitalocean #holdings #docn #weatherbie
8 days ago
The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.
Top 5 Upgrades:
Truist upgraded CoreWeave (CRWV) to Buy from Hold with a price target of $126, down from $131. As more enterprises move toward open models and sovereign AI, the firm believes demand for compute will only increase, benefiting CoreWeave, though shares trade at a significant discount to neoclouds despite the company's "leadership position."
Stifel upgraded DigitalOcean (DOCN) to Buy from Hold with a price target of $160, up from $135. The firm cites valuation for the upgrade with the shares down 30% from recent highs.
Wells Fargo upgraded Idacorp (IDA) to Equal Weight from Underweight with a price target of $154, up from $121. Wells' higher estimates indicate the shares are cheaper than it screens.
Wells Fargo upgraded NorthWestern Energy (NWE) to Equal Weight from Underweight with a price target of $62, up from $54. The pending merger with Black Hills (BKH) has cleared every hurdle except Montana, the firm tells investors in a research note.
#price #coreweave
Top 5 Upgrades:
Truist upgraded CoreWeave (CRWV) to Buy from Hold with a price target of $126, down from $131. As more enterprises move toward open models and sovereign AI, the firm believes demand for compute will only increase, benefiting CoreWeave, though shares trade at a significant discount to neoclouds despite the company's "leadership position."
Stifel upgraded DigitalOcean (DOCN) to Buy from Hold with a price target of $160, up from $135. The firm cites valuation for the upgrade with the shares down 30% from recent highs.
Wells Fargo upgraded Idacorp (IDA) to Equal Weight from Underweight with a price target of $154, up from $121. Wells' higher estimates indicate the shares are cheaper than it screens.
Wells Fargo upgraded NorthWestern Energy (NWE) to Equal Weight from Underweight with a price target of $62, up from $54. The pending merger with Black Hills (BKH) has cleared every hurdle except Montana, the firm tells investors in a research note.
#price #coreweave
22 days ago
DigitalOcean Holdings, Inc. (NYSE:DOCN) ranks 3rd on our list of Best Performing Agentic AI Stocks to Buy. The stock has gained more than 195% over the past 6-months. The strong momentum is driven by surging AI demand and strong Q1 earnings in May. Wall Street continues to expect more than 37% upside over the next 12 months.
During fiscal Q1 2026, earnings posted on May 5, DigitalOcean Holdings, Inc. (NYSE:DOCN) posted $257.91 million in revenue, up compared to the expected $249.76 million. The EPS of $0.44 also topped the expectations of $0.26. Notably, during the quarter, the company's AI-specific ARR surged 221% year-over-year to reach $170 million. In addition, revenue from customers spending over $1 million grew by 179%.
Based on the strong performance, management raised the full-year 2026 revenue outlook to $1.13 billion – $1.145 billion and provided a bold multi-year target forecasting revenue growth to exceed 50% in fiscal 2027.
In a separate news, recently, on June 30, DigitalOcean Holdings, Inc. (NYSE:DOCN) was added to the Russell 1000 index as it moved up from the Russell 2000. The Russell 1000 Index represents approximately the 1,000 largest US companies by market capitalization.
DigitalOcean Holdings, Inc. (NYSE:DOCN) is a cloud infrastructure provider focused on simplifying deployment for developers, startups, and businesses. The company said its platform combines GPU infrastructure and core cloud services to support AI and broader production workloads, and that it serves more than 640,000 customers. The company's GPU infrastructure allows small and mid-sized companies to build and deploy AI agents without relying on hyperscale cloud platforms.
During fiscal Q1 2026, earnings posted on May 5, DigitalOcean Holdings, Inc. (NYSE:DOCN) posted $257.91 million in revenue, up compared to the expected $249.76 million. The EPS of $0.44 also topped the expectations of $0.26. Notably, during the quarter, the company's AI-specific ARR surged 221% year-over-year to reach $170 million. In addition, revenue from customers spending over $1 million grew by 179%.
Based on the strong performance, management raised the full-year 2026 revenue outlook to $1.13 billion – $1.145 billion and provided a bold multi-year target forecasting revenue growth to exceed 50% in fiscal 2027.
In a separate news, recently, on June 30, DigitalOcean Holdings, Inc. (NYSE:DOCN) was added to the Russell 1000 index as it moved up from the Russell 2000. The Russell 1000 Index represents approximately the 1,000 largest US companies by market capitalization.
DigitalOcean Holdings, Inc. (NYSE:DOCN) is a cloud infrastructure provider focused on simplifying deployment for developers, startups, and businesses. The company said its platform combines GPU infrastructure and core cloud services to support AI and broader production workloads, and that it serves more than 640,000 customers. The company's GPU infrastructure allows small and mid-sized companies to build and deploy AI agents without relying on hyperscale cloud platforms.
25 days ago
DigitalOcean (DOCN) just reached an important milestone. The cloud infrastructure company officially joined the Russell 1000 Index on June 29, a move that reflects its rapid growth and expanding market value. The announcement comes after an exceptional first quarter in which the company beat Wall Street's expectations on both revenue and earnings while raising its full-year outlook.
The timing couldn't be better. DigitalOcean has transformed itself into an AI-focused cloud platform, attracting larger enterprise customers and AI startups at a rapid pace. That combination has sent DOCN stock soaring over the past year. But after such a massive rally, investors also need to consider whether the valuation already reflects much of the optimism.
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The timing couldn't be better. DigitalOcean has transformed itself into an AI-focused cloud platform, attracting larger enterprise customers and AI startups at a rapid pace. That combination has sent DOCN stock soaring over the past year. But after such a massive rally, investors also need to consider whether the valuation already reflects much of the optimism.
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1 month ago
DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the 7 Worst Cloud Stocks To Buy According to Short Sellers. On June 3, KeyBanc initiated coverage on DigitalOcean Holdings, Inc. (NYSE:DOCN) with an Overweight rating and **** igned a price target of $200 to the stock. The price target reflects 15.6% upside from current levels. As AI demand increases, DigitalOcean is investing heavily to build and expand its cloud infrastructure, the **** yst told investors in a research note. As a result, the company is expected to generate higher cloud revenues in the coming year.
Analyst Jackson Ader had this to say about the company's journey and future prospects:
"The moment came for DigitalOcean in 2024, when the world began realizing that hyperscalers were unable to keep up with AI workload demand. Customers, both traditional and AI start-ups, turned to DigitalOcean for their AI inference needs and were met with easy deployments, access to storage, memory and CPU compute that was already DigitalOcean's specialty and, importantly for the stock, an increasing amount of GPU and CPU capacity. We believe DigitalOcean's playbook has more room to expand."
Earlier, on May 12, UBS also expressed confidence in the company's long-term growth outlook. The firm raised its price target on DigitalOcean Holdings, Inc. (NYSE:DOCN) from $160 to $170 and reaffirmed a Neutral rating. Discussions with management increased confidence in the company's competitive positioning, business strength, and growing demand driven by AI.DigitalOcean Holdings, Inc. (NYSE:DOCN) operates an agentic inference cloud platform that enables developers and growing businesses to run, scale, and build applications worldwide. The company's offerings include infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) solutions. It also delivers machine learning (ML) and artificial intelligence (AI) solutions.While we acknowledge the potential of DOCN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.READ NEXT: 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds and 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds.Disclosure: None. Follow Insider Monkey on Google News.
Analyst Jackson Ader had this to say about the company's journey and future prospects:
"The moment came for DigitalOcean in 2024, when the world began realizing that hyperscalers were unable to keep up with AI workload demand. Customers, both traditional and AI start-ups, turned to DigitalOcean for their AI inference needs and were met with easy deployments, access to storage, memory and CPU compute that was already DigitalOcean's specialty and, importantly for the stock, an increasing amount of GPU and CPU capacity. We believe DigitalOcean's playbook has more room to expand."
Earlier, on May 12, UBS also expressed confidence in the company's long-term growth outlook. The firm raised its price target on DigitalOcean Holdings, Inc. (NYSE:DOCN) from $160 to $170 and reaffirmed a Neutral rating. Discussions with management increased confidence in the company's competitive positioning, business strength, and growing demand driven by AI.DigitalOcean Holdings, Inc. (NYSE:DOCN) operates an agentic inference cloud platform that enables developers and growing businesses to run, scale, and build applications worldwide. The company's offerings include infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) solutions. It also delivers machine learning (ML) and artificial intelligence (AI) solutions.While we acknowledge the potential of DOCN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.READ NEXT: 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds and 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds.Disclosure: None. Follow Insider Monkey on Google News.
