Why DigitalOcean Stock Sank Today

Shares of cloud computing company DigitalOcean (NYSE: DOCN) sank on Monday after the company reported financial results for the third quarter of 2024. As of noon ET, DigitalOcean stock was down 10%. But it was a somewhat odd reaction considering the company beat Q3 expectations and raised its full-year financial guidance.DigitalOcean's management had expected Q3 revenue of up to $197 million but in reality the business generated revenue of $198 million. Looking at profit metrics, the company outperformed in those areas as well. Moreover, management raised its full-year guidance for both the top and the bottom lines.When a company beats and raises its guidance, the stock usually rises. But DigitalOcean stock is sinking today because investors are disappointed with its guidance for the upcoming fourth quarter.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool