DigitalOcean's thesis is intact, with a $260 price target by end-2027, because cash flows will ultimately drive value. The market is focused on a rising share count and weaker quarterly free cash flow, legitimate short-term concerns. But revenue growth is expected to accelerate in 2027, and free cash flow could more than double over the next 18 months. The medium-term opportunity requires patience. x.com 

Nebius' software efficiency and a possible end to heavy AI financing support a re-rating. Per @DrTomsLens, its engineers got about 43% more video output from the same GPUs, cutting compute cost per second by 30%; newer hardware alone is not enough without capable software teams. Oracle expects to fund growth from free cash flow in FY2029, suggesting capital-heavy AI providers may eventually outgrow debt and dilution. Google Cloud reported 103% revenue growth amid strong AI infrastructure demand. … Show more

DigitalOcean has the most misunderstood balance sheet in AI infrastructure, deleveraging with equity while growth accelerates. It sold $888M of stock at $77, repaid its entire $500M term loan, set aside cash for its 2026 converts and exits the year near 3x leverage with nothing material due until 2030. Growth was 22% last quarter with 25-27% guided, AI customer ARR rose 221%, and a benchmark ranks it first in open-source inference speed. Gross margin fell five points, with no backlog cushion. … Show more

DigitalOcean is becoming the hyperscaler for small businesses, yet trades at the same forward sales multiple as Alphabet. Having already pre-announced the quarter, its results will hinge entirely on forward guidance, which should be very strong. x.com  x.com 

DigitalOcean is the AI onramp for developers and small businesses that hyperscalers structurally cannot serve profitably, a specific answer to the SaaS-death thesis. AI customer ARR of $170M is growing 221% inside a $1B ARR business. AWS commitments, Azure enterprise agreements and GCP contracts suit $100M+ IT budgets, not a 50-person startup needing GPU compute with a credit card. The quarter beat on revenue and on EPS by 70%, and FY27 growth guidance of 50% compares with a 31% estimate. x.com 

Sea looks inexpensive at 7.7x EBITDA with 48% revenue growth, against eBay at 15x and 14%. Sea Cloud may resemble early self-funded AWS rather than a debt-heavy neocloud: Sea has $7B net cash, a 10% free-cash-flow yield, 25,000 GPUs for its core business and, it says, 500 staff already on the project. DBS models startup losses, but those are its assumptions. The upside depends on cloud spending not becoming a massive undertaking; earnings clarity on that spending matters. x.com  x.com  x.com  x.com  … Show more

Nebius's projected growth makes its simplified valuation around $135 very interesting. Estimates are easily around $13 billion in 2027 and $27 billion in 2028, with roughly 7x 2027 EV/EBITDA at that share price. Company-specific factors also appeal. x.com 

DigitalOcean is now a core investment as a full cloud and data center play, backed by strong management and strong growth. Its valuation is finally getting to a level that justifies accumulating more, and a drop below $100 would justify building to a full core position. x.com 

Nebius's new financing addresses funding fears around its compute buildout. Its $3.5B Citi facility funds data centers and GPUs, and over $40B of long-term contracts with investment-grade customers offers more borrowing capacity. Bank of America says funding is covered through 2026 and reiterates Buy and a $310 target, expecting the shares to double; it estimates about $18B of new capital for 1 GW in 2027, potentially less with customer prepayments. x.com 

DigitalOcean is well positioned after transforming from a developer host into an AI-native cloud, per a Q2 summary from @Finsee_main. Q2 revenue growth accelerated to 29% on AI inference demand, its first nine-figure annual commitments lifted remaining performance obligations 12x to $894M, and guidance points to a Q4 exit growth rate above 35%. Per the same summary, that growth comes with rising capital intensity. x.com