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Forget Nebius Group: Everyone Is Sleeping on This Better Revenue-Gushing Stock
Yahoo Finance· 2026-02-06 19:50
Group 1: Nebius Group Overview - Nebius Group (NASDAQ: NBIS) is expected to report triple-digit revenue growth for both last year and this year, making it an attractive stock option [1] - Despite the anticipated growth, Nebius is currently unprofitable and is not expected to achieve profitability in the near future, with analysts predicting that losses will widen before they contract [2] Group 2: DigitalOcean Overview - DigitalOcean (NYSE: DOCN) is presented as a safer investment alternative, being already profitable and likely to remain so indefinitely [3] - DigitalOcean serves around 640,000 paying customers, including notable clients like video game developer Double Eleven and travel-planning website Framey [4] - The company has successfully tailored its offerings to meet the needs of smaller customers at affordable prices, distinguishing itself from larger competitors like Google and Microsoft [5] Group 3: DigitalOcean's Business Model - DigitalOcean's services are designed to scale, allowing smaller customers to gradually enter the artificial intelligence (AI) space at a low initial cost [6] - Customers can test DigitalOcean's technology for as little as $50 per month, with the majority spending several hundred to a few thousand dollars monthly [7] - There was a significant 72% year-over-year increase in the number of users reporting annual recurring revenue exceeding $1 million as of the third quarter of last year [8]