DigitalOcean is trading 5.5% down at $85.50 in pre-market on November 4 after its November 3 earnings report; reporting linked the decline to compressed gross margins, lower operating income, and costs of scaling GPU and data-center capacity for AI workloads.
- Q3 revenue was $321 million, up 40% year over year; revenue and earnings beat expectations, and management raised its outlook.
- Management projected more than 60% revenue growth for 2027; cost concerns better explained the decline than the software sector’s positive pre-market trend.