DigitalOcean (NYSE:DOCN) pops as AI cloud trade shifts on new backlog math
DigitalOcean Holdings, Inc. climbed 9.3% to $143.64 Wednesday afternoon after the company forecasted its Q2 remaining performance obligations topping $800 million. That puts focus on backlog and capacity instead of just stronger AI revenue. Shares touched $157.99 at their high and 3.28 million shares changed hands as of 1:50 p.m. EDT, valuing DigitalOcean near $16.1 billion. DigitalOcean reported a big jump in its RPO for its size. RPO for Q2 2025 was $53 million, with revenue at $219 million. A July 7 update suggests RPO is now at least 15.1 times what it was a year ago, while revenue growth is set to pick up to around 29%, compared with 14% growth in the same period a year earlier. The company also said its weighted average obligation life rose from 1.6 years to over three years.