Could This Tiny Company Take on Amazon, Microsoft, and Google... And Win?

By Brian Stoffel and Brian Feroldi – Oct 5, 2021 at 6:45AM

Key Points

This company is focused on cloud computing, not e-commerce.
It is pursuing customers that are small and often overlooked by the big cloud players.
Motley Fool Issues Rare “All In” Buy Alert

NYSE: DOCN

DigitalOcean

Market Cap

$3B

Today's Change

(-1.76%) -$0.58

Current Price

$32.44

Price as of April 25, 2024, 4:00 p.m. ET

It's hard to believe someone is offering better value points.

Many of the tools we use everyday -- from tools on our apps to streaming videos -- are in the cloud. The internet has fundamentally changed the way we access the things we want; and three companies are the kings of cloud computing: Amazon (AMZN -1.65%), Microsoft (MSFT -2.45%), and Alphabet's (GOOG -1.96%) (GOOGL -1.97%) Google.

But a tiny company is rapidly stealing market share away from these players by focusing on very small customers and offering up simple tools with transparent pricing. That company is Digital Ocean (DOCN -1.76%), and in its short time on the public markets, it has performed remarkably well.

But can it continue to do well when it's facing such behemoths? In this video, recorded Sept. 19, from Motley Fool contributors Brian Stoffel and Brian Feroldi, listen to them break down the bull and bear cases for Digital Ocean. At the end, they'll reveal how the stock fared in their investing frameworks.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Brian Feroldi owns shares of Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft. Brian Stoffel owns shares of Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Digitalocean Holdings, Inc., and Microsoft. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.