US Cloud Stocks Lose 1.8 Trillion Won in a Day, Is Investment Enthusiasm Cooling?

DIGITALOCEAN HLDGS INC (NASDAQ: DOCN) shares plunged 10.43% on the New York Stock Exchange on the 1st, closing at $129.50. Market capitalization fell to about $13.5 billion (roughly ₩19 trillion), erasing about $1.28 billion (₩1.8 trillion) in value in a single day, with trading volume reaching 2,955,306 shares.

After upsizing a common-stock offering to approximately $800 million in March to raise capital, the company reported 22% revenue growth in its first-quarter earnings and introduced more than 15 new AI and cloud products—including its “AI-Native Cloud”—signaling aggressive investment and expansion plans. However, recent metrics show a weighted average cost of capital around 14% and a price-to-earnings ratio in the high 40s, heightening concerns about overvaluation and financial strain.

Founded in 2011, DigitalOcean is a U.S. cloud-infrastructure provider offering virtual servers, managed databases, Kubernetes services and more to SMEs, startups and developers through its global data centers. Since listing on the New York Stock Exchange in 2021, the company has targeted a niche cloud segment focused on smaller customers by emphasizing a low-cost, simplified offering, in contrast to Amazon AWS and Microsoft Azure.