Shares of the cloud computing platform DigitalOcean Holdings (NYSE:DOCN) have fallen by nearly 13% as of the current writing following the announcement of a leadership succession plan.
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The company’s Board has initiated a search process for a new CEO. In the meantime, Yancey Spruill will continue to act as the CEO and will vacate his role as CEO and Board member once a successor is appointed.
Further, DigitalOcean has appointed Warren Adelman as the Executive Chairman of its Board. Adelman has been a Board member since 2020 and Lead Independent Director since 2022.
Yancey successfully took DigitalOcean public in 2021. Since then, its top line has expanded from $428.6 million in 2021 to $576.32 million in 2022. However, the company’s net loss has widened from $19.5 million in 2021 to $24.3 million in 2022.
Overall, the Street has a consensus price target of $41.13 on DigitalOcean, alongside a Moderate Buy consensus rating. From an all-time high of $129 in November 2021, its shares have gradually declined to the current $27 level.
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