Herald Loads Up On DigitalOcean (DOCN) With 202,000 Shares
Key Points
Bought 202,000 shares of DigitalOcean Holdings, with an estimated trade size of $9.71 million.
Post-trade, the position represents 1.27% of 13F reportable assets under management.
The new stake places DigitalOcean Holdings outside the fund’s top five positions.
- 10 stocks we like better than DigitalOcean ›
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 13, 2026, Herald Investment Management Ltd. initiated a new position in DigitalOcean Holdings (NYSE:DOCN), acquiring 202,000 shares.
The estimated transaction value was $9.71 million. The quarter-end position value also stood at $9.71 million, reflecting the new holding’s valuation, including changes in stock price.
What else to know
This new position accounts for 1.27% of Herald’s reportable U.S. equity assets under management.
Top holdings after the filing:
- NYSE:CLS: $67.87 million (8.9% of AUM)
- NYSE:FN: $48.94 million (6.4% of AUM)
- NASDAQ:PEGA: $42.00 million (5.5% of AUM)
- NASDAQ:SIMO: $35.64 million (4.7% of AUM)
- NASDAQ:VICR: $26.85 million (3.5% of AUM)
As of February 28, 2026, shares of DigitalOcean Holdings were priced at $56.06, up 31.26% over the past year and outperforming the S&P 500 by 13.9 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $863.96 million |
| Net Income (TTM) | $251.87 million |
| Price (as of market close Feb. 27, 2026) | $56.06 |
| One-Year Price Change | 31.26% |
Company snapshot
DigitalOcean offers a cloud computing platform providing on-demand infrastructure, managed application services, and developer tools, with revenue primarily from usage-based and subscription fees.
The company operates a scalable, self-service business model targeting efficiency and automation, monetizing infrastructure, platform, and value-added services for small and medium-sized businesses.
It serves software engineers, startups, and technology-driven organizations seeking cost-effective cloud solutions for web hosting, application deployment, and development projects.
What this transaction means for investors
DigitalOcean is a cloud services provider that serves small and medium-sized businesses. While it’s a relatively small company compared to other industry giants, it could be poised for significant growth going forward.
Like many companies, DigitalOcean has been focusing heavily on utilizing artificial intelligence (AI). It’s also reaped the rewards of the AI boom, with its stock price soaring by nearly 80% over the last three years alone.
DigitalOcean’s dedication to smaller businesses could give it an edge in the industry. Many larger cloud providers are prohibitively expensive for small and medium-sized businesses, and DigitalOcean aims to fill that gap by providing affordable access to cloud and AI services.
Like other businesses diving into AI, however, it’s also vulnerable to intense volatility. In fact, over the last two weeks alone, DigitalOcean’s price has plunged by more than 17%.
While it could still be a profitable long-term investment — especially if AI continues to thrive over time — investors should be prepared to weather the inevitable short-term turbulence.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celestica and DigitalOcean. The Motley Fool has a disclosure policy.
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