On July 14, DigitalOcean Holdings rose 5.44% in regular trading, trading at $132.34/share, with turnover of $69.95 million. The rebound came after the stock had earlier declined on UBS's target price cut, as investors refocused on the company's strong Q2 preliminary results.

On the news front, DigitalOcean pre-announced Q2 revenue growth of approximately 29% year over year, with adjusted EBITDA margin and non-GAAP EPS expected at or above the high end of prior guidance. The company also disclosed that remaining performance obligations (RPO) are projected to exceed $800 million, representing a more than tenfold increase from the year-ago quarter. Multiple nine-figure annual customer commitments for AI inference and cloud products were signed during the period.

UBS recently lowered its price target from $175 to $155, maintaining a neutral rating, noting the beat was driven by positive momentum rather than structural business change. The firm highlighted that DigitalOcean's Richmond data center is running near full capacity, and the Kansas City facility ramp will be the key swing factor for Q3 revenue.

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