2023-05-01 18:01:00 ET
Shares of cloud-computing company DigitalOcean (NYSE: DOCN) dropped 19.5% in April, according to data provided by S&P Global Market Intelligence . This was a punctuated drop considering the S&P 500 was up 1.6% for the month. And it appears the drop is related to negative analyst sentiment and the recently reported financial results of the cloud titans.
DigitalOcean reported financial results for 2022 on Feb. 16. And it will report financial results for the first quarter of 2023 on May 9. Therefore, the stock's underperformance was not the result of poor financial results -- no financials were reported in April.
Since the problem wasn't with DigitalOcean, investors should look elsewhere to explain the nearly 20% drop. And looking at the cloud-computing titans -- Alphabet , Microsoft , and Amazon -- is a good place to start. All three reported financial results in April.
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Why DigitalOcean Stock Dropped Nearly 20% Last Month