Billionaire George Soros’ 10 Small-Cap Stocks with Huge Upside Potential

6. DigitalOcean Holdings, Inc. (NYSE:DOCN)

DigitalOcean Holdings, Inc. operates a cloud computing platform. It offers on-demand platform tools and infrastructure for developers at growing tech firms. The company also provides infrastructure-as-a-service (IaaS) solutions, platform-as-a-service (PaaS) solutions, software-as-a-service (SaaS) solutions, and IP address management and domain name system management. According to the median analyst price target, the stock still has an upside of  64.92%.

The firm’s product innovation has accelerated over the past few quarters. It increased its product launches from 42 in Q3 2024 to 49 in Q4 2024. As per the guidance, 50+ product launches are expected in the first quarter of 2025. In addition to product innovation, the company’s AI opportunity presents an impressive growth potential. It’s recently launched GenAI platform could be a game changer.

Based on DigitalOcean’s outlook in machine learning and artificial intelligence, Morgan Stanley upgraded the firm at the beginning of this year from Equal-Weight to Overweight with an increased price target of $41. Later on, Citi also initiated coverage of the stock with a Buy rating and a $45 price target.

Analyst Josh Baer mentioned:

“DigitalOcean’s larger customers are demanding more product capabilities and the company is delivering.”

Based on analysts’ optimism, DOCN’s prospects look promising.