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Stock impact report

3 Overrated Stocks We Keep Off Our Radar [Yahoo! Finance]

DigitalOcean Holdings, Inc. (DOCN) 
Company Research Source: Yahoo! Finance
While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. Keeping that in mind, here are three overhyped stocks that may correct and some you should consider instead. DigitalOcean (DOCN) One-Month Return: +11.6% Built for simplicity in a world of complex cloud solutions, DigitalOcean (NYSE:DOCN) provides a simplified cloud computing platform that enables developers and small businesses to quickly deploy and scale applications. Why Do We Think Twice About DOCN? Customers have churned over the last year due to the commoditized nature of its software, as reflected in its 99.8% net revenue retention rate Sky-high servicing costs result in an inferior gross margin of 59.9% that must be offset through increased usage Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient DigitalOcean is trading at $95.97 per share, or 9.1x forward pri Show less Read more
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