Shares of cloud computing platform DigitalOcean (NYSE:DOCN) jumped 2.9% in the afternoon session after its unit, Cloudways, announced the launch of a new product line called Managed AI Agents.
According to DOCN's press release, Managed AI agents let customers deploy two widely used open-source agents, OpenClaw and Hermes, through the same managed-hosting dashboard they already use for websites and apps. This means Cloudways could help turn the messy job of hosting open-source AI agents into another managed plan on the dashboard customers already pay for.This could be accretive to growth. Notably, the company cited more than 386,000 GitHub stars for OpenClaw and more than 228,000 for Hermes.
The announcement followed positive sentiment in the broader AI cloud services sector, as evidenced by peer HIVE Digital Technologies signing a five-year, $350 million cloud services agreement with an enterprise customer, as reported by Newsfile Corp.
The shares were trading at $135.24, up 4.1% from the previous close.
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DigitalOcean's shares are extremely volatile and have had 64 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 33.7% on the news that the company reported stellar first-quarter 2026 financial results that significantly beat analyst expectations on both profit and revenue, and raised its future guidance.
The cloud provider announced adjusted earnings of $0.44 per share, which was 67.7% above the consensus estimate of $0.26. Revenue for the quarter reached $257.9 million, representing 22.4% year-over-year growth and beating expectations. Looking ahead, DigitalOcean provided a strong revenue forecast for the upcoming quarter that was 4.8% above analyst expectations. Additionally, the company raised its full-year guidance for both revenue and adjusted earnings per share, signaling management's confidence in its business trajectory.
DigitalOcean is up 176% since the beginning of the year, but at $135.24 per share, it is still trading 25.1% below its 52-week high of $180.50 from June 2026. Investors who bought $1,000 worth of DigitalOcean's shares 5 years ago would now be looking at an investment worth $2,645.
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