Which Is a Better Investment, Applied Digital Corporation or DigitalOcean Holdings, Inc. Stock?

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Sifting through countless of stocks in the IT Services industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Applied Digital Corporation, DigitalOcean Holdings or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Applied Digital Corporation, DigitalOcean Holdings and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Applied Digital Corporation, DigitalOcean Holdings and Inc.

Applied Digital Corporation designs, develops, and operates digital infrastructure solutions and cloud services high-performance computing (HPC) and artificial intelligence industries in North America. It operates through three segments: Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The company offers infrastructure services to crypto mining customers; and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. It also engages in the designing, constructing, and managing of data centers to support HPC applications. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company provides on-demand infrastructure and platform tools for developers at growing technology companies. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute, storage, and networking products, including cloud firewalls, managed load balancers, and virtual private cloud software, as well as IP address management and domain name system management. In addition, the company provides platform-as-a-service (PaaS) and software-as-a-service (SaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. Further, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU droplets; GENAI platform, a solution for deploying AI applications; bare metal GPUS which provides access to a GPU server without any virtualization layer and gives developers with customizable server for their use case; and Jupyter Notebooks that provides cloud workspace and managed interactive development environment for exploring data and training, and building machine learning models. Its customers use its platform in various industry verticals, such as gaming, fintech, and cybersecurity, as well as for a range of use cases, including building and hosting websites, web and mobile applications development, AI integration, and building AI products and applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in New York, New York.

Latest IT Services and Applied Digital Corporation, DigitalOcean Holdings, Inc. Stock News

As of May 30, 2025, Applied Digital Corporation had a $2.3 billion market capitalization, compared to the IT Services median of $1.1 million. Applied Digital Corporation’s stock is up 32.7% in 2025, up 33.6% in the previous five trading days and up 47.84% in the past year.

Currently, Applied Digital Corporation does not have a price-earnings ratio. Applied Digital Corporation’s trailing 12-month revenue is $221.2 million with a -110.4% net profit margin. Year-over-year quarterly sales growth most recently was 22.2%. Analysts expect adjusted earnings to reach $-0.670 per share for the current fiscal year. Applied Digital Corporation does not currently pay a dividend.

As of May 30, 2025, DigitalOcean Holdings, Inc. had a $2.6 billion market cap, putting it in the 62nd percentile of all stocks. DigitalOcean Holdings, Inc.’s stock is down 16.7% in 2025, down 1.5% in the previous five trading days and down 24.19% in the past year.

Currently, DigitalOcean Holdings, Inc.’s price-earnings ratio is 24.9. DigitalOcean Holdings, Inc.’s trailing 12-month revenue is $806.6 million with a 13.5% net profit margin. Year-over-year quarterly sales growth most recently was 14.1%. Analysts expect adjusted earnings to reach $1.943 per share for the current fiscal year. DigitalOcean Holdings, Inc. does not currently pay a dividend.

How We Compare Applied Digital Corporation, DigitalOcean Holdings and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Applied Digital Corporation, DigitalOcean Holdings and Inc.’s stock grades to see how they measure up against one another.

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