BofA double downgrades DigitalOcean on material traffic slowdown

BofA analyst Wamsi Mohan double downgraded DigitalOcean to Underperform from Buy with a price target of $25, down from $47. Data from the firm’s analytics team shows that traffic to the DigitalOcean domain has “materially slowed down” since the beginning of the year. The analyst now expects the company’s customer growth, average revenue per user and churn metrics to turn worse in the near-term. DigitalOcean’s fundamental slowdown and CEO transition create headwinds in the trajectory of the business, the analyst tells investors in a research note.