Short Sellers May Be Regretting Shorting DigitalOcean Holdings (DOCN) Stock After Latest Analyst Rating

3 hours ago 2

Jabran Kundi

Tue, June 16, 2026 astatine 7:04 AM CDT 2 min read

DigitalOcean Holdings, Inc. (NYSE:DOCN) is 1 of the 7 Worst Cloud Stocks To Buy According to Short Sellers. On June 3, KeyBanc initiated sum connected DigitalOcean Holdings, Inc. (NYSE:DOCN) with an Overweight standing and assigned a terms people of $200 to the stock. The terms people reflects 15.6% upside from existent levels. As AI request increases, DigitalOcean is investing heavy to physique and grow its unreality infrastructure, the expert told investors successful a probe note. As a result, the institution is expected to make higher unreality revenues successful the coming year.

Analyst Jackson Ader had this to accidental astir the company's travel and aboriginal prospects:

"The infinitesimal came for DigitalOcean successful 2024, erstwhile the satellite began realizing that hyperscalers were incapable to support up with AI workload demand. Customers, some accepted and AI start-ups, turned to DigitalOcean for their AI inference needs and were met with casual deployments, entree to storage, representation and CPU compute that was already DigitalOcean's specialty and, importantly for the stock, an expanding magnitude of GPU and CPU capacity. We judge DigitalOcean's playbook has much country to expand."

Earlier, connected May 12, UBS besides expressed assurance successful the company's semipermanent maturation outlook. The steadfast raised its terms people connected DigitalOcean Holdings, Inc. (NYSE:DOCN) from $160 to $170 and reaffirmed a Neutral rating. Discussions with absorption accrued assurance successful the company's competitory positioning, concern strength, and increasing request driven by AI.DigitalOcean Holdings, Inc. (NYSE:DOCN) operates an agentic inference unreality level that enables developers and increasing businesses to run, scale, and physique applications worldwide. The company's offerings see infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) solutions. It besides delivers instrumentality learning (ML) and artificial quality (AI) solutions.While we admit the imaginable of DOCN arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected 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 connected Google News.