DigitalOcean Holdings, Inc. (DOCN) Covered Calls

DigitalOcean Holdings, Inc. provides a simplified cloud computing platform designed for developers, startups, and small-to-medium businesses. The company offers on-demand infrastructure and platform tools, including virtual machines called Droplets, managed databases, and scalable storage. By focusing on developer experience and predictable pricing, DigitalOcean enables digital-native enterprises to deploy and scale applications without the complexity of traditional hyperscale providers.

You can sell covered calls on DigitalOcean Holdings, Inc. to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for DOCN (prices last updated Thu 4:16 PM ET):

DigitalOcean Holdings, Inc. (DOCN) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
63.78 +1.38 63.79 65.00 2.9M - 5.7
Covered Calls For DigitalOcean Holdings, Inc. (DOCN)
Expiration Strike Call Bid Net Debit Return
If Flat
Annualized
Return If Flat
Feb 20 64 1.90 63.10 1.4% 56.8%
Mar 20 65 6.20 58.80 10.5% 104%
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Extended Business Description

Core Business and Products

DigitalOcean is a leading cloud infrastructure provider that specializes in "democratizing the cloud" for independent developers and growing businesses. Its product ecosystem is built around Droplets, which are highly customizable virtual servers that can be deployed in seconds. Key service areas include:

  1. Compute: Standard and CPU-optimized Droplets, alongside specialized GPU Droplets for AI and machine learning workloads.
  2. Managed Services: Fully managed database hosting for MongoDB, MySQL, and PostgreSQL, as well as managed Kubernetes for container orchestration.
  3. Storage and Networking: Scalable block storage, S3-compatible object storage (Spaces), and integrated networking tools like load balancers and virtual private clouds.

Competitive Landscape

DigitalOcean carves out a niche by offering simplicity in a market dominated by massive, complex providers. It competes directly with Amazon Web Services, Microsoft Azure, and Alphabet Google Cloud. While these hyperscalers offer more services, DigitalOcean differentiates through transparent pricing and ease of use. In the specialized cloud and AI infrastructure space, they encounter competition from providers like Applied Digital Corporation for high-density compute and GDS Holdings in global data center capacity. Other relevant peers in the software-defined infrastructure and web hosting sector include Wix.com.

Strategic Outlook and Innovation

The company is aggressively expanding its "Inference Cloud" to support the next generation of AI-native applications. This strategy centers on the Agentic Cloud, a unified platform that simplifies the creation, deployment, and scaling of autonomous AI agents. Innovation efforts are focused on hardware-aware scheduling and optimized runtimes that deliver predictable performance for inference-heavy workloads. By doubling down on GPU capacity and high-density hosting, DigitalOcean aims to capture a significant portion of the mid-market AI spend as organizations transition from AI experimentation to full-scale production.