What happened
According to an SEC filing published Feb. 17, 2026, Glenview Capital Management initiated a new position in DigitalOcean Holdings (DOCN 3.60%) during the fourth quarter of 2025. The fund acquired 2,004,299 shares, with an estimated transaction value of $96.45 million based on the quarterly average price. The fund’s quarter-end position in DigitalOcean was valued at $96.45 million, and the net position change reflected this amount.
What else to know
This purchase opens a new position for the fund, representing 1.96% of 13F reportable assets under management as of Dec. 31, 2025.
- Top holdings after the filing:
- CVS Health: $650.50 million (13.9% of AUM)
- Teva Pharmaceutical Industries: $521.84 million (11.1% of AUM)
- Global Payments: $458.29 million (9.8% of AUM)
- Tennant Healthcare: $394.21 million (8.4% of AUM)
- Amazon: $209.88 million (4.5% of AUM)
As of Feb. 27, 2026, shares of DigitalOcean Holdings were priced at $56.06, up 31.3% over the past year, with a 14 percentage-point alpha versus the S&P 500.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close February 27, 2026) | $56.06 |
| Market Capitalization | $5.13 billion |
| Revenue (TTM) | $901.43 million |
| Net Income (TTM) | $259.26 million |
Company snapshot
DigitalOcean:
- Offers cloud computing infrastructure, platform tools, managed databases, and container solutions for developers and businesses.
- Generates revenue primarily through subscription-based cloud services, charging customers for usage of compute, storage, and networking resources.
- Targets developers, startups, and small to medium-sized businesses across North America, Europe, Asia, and international markets.
DigitalOcean Holdings operates a global cloud computing platform that simplifies infrastructure for developers and small- to mid-sized businesses. The company leverages a scalable, subscription-based model to deliver reliable and accessible cloud solutions across multiple regions. Its competitive edge lies in providing user-friendly, cost-effective services tailored to the needs of smaller enterprises and individual developers.
What this transaction means for investors
Glenview Capital Management’s opening purchase of DigitalOcean is an eye-catching move. The stock immediately became the fund’s 11th-largest holding and has risen in value since -- even after DigitalOcean sold off roughly 15% since its Q4 earnings report. While I can’t say what Glenview’s exact intentions are with the stock, it has held numerous positions for multiple years, so it will be interesting to see if they keep holding or even add to the promising cloud computing company.
As for the stock itself, DigitalOcean’s earnings from earlier in the week looked excellent to me:
- revenue grew 18%
- annual recurring revenue (ARR) from $1 million customers spiked 123%
- net dollar retention from $1 million customers was 115%
- AI ARR rose 150%
- remaining performance obligations rose sixfold
- adjusted earnings per share rose 10%
While profitability may dip as the company adds 31 megawatts of new data center capacity -- compared to today’s 43 -- it seems clear that this is an essential investment. Speaking to DOCN’s expansion, CEO Padmanabhan T. Srinivasan stated, "We are no longer a niche developer cloud. We are the platform that high-growth cloud and AI natives are increasingly choosing to run production AI workloads at scale."
This move up the value chain (and to larger customers) is a more recent shift for the company, but one that opens up vast growth potential, supported by the higher growth rates its largest customers deliver quarter after quarter. Trading at 19 times cash from operations, DigitalOcean is reasonably priced, given management’s expectation of exiting 2026 with sales growing by 25%. Going forward, investors will want to see what Glenview does with its position and make sure DOCN generates a solid ROI from its heavy capex spending as it adds new data center capacity.
