On August 4, DigitalOcean Holdings, Inc. rose 5.37% in after-hours trading, trading at $134.0 per share, with turnover of approximately $23.65 million. The surge came on the eve of the company's Q2 earnings release scheduled for pre-market on August 4.

On the news front, DigitalOcean previously pre-announced Q2 revenue growth of approximately 29% year over year, with adjusted EBITDA margin and non-GAAP EPS expected to reach or exceed the high end of prior guidance. UBS noted that the company's Richmond data center, which came online in March, is now running near full capacity. The company also signed multiple nine-figure annual customer commitments for its AI inference and cloud products, projecting remaining performance obligations to surge more than 10-fold year over year to over $800 million.

The stock had previously declined over 15% following the completion of a $472 million convertible senior notes repurchase and the issuance of approximately 12.5 million new shares at $117.54. With short-term selling pressure largely absorbed and strong fundamental expectations intact, bullish confidence has continued to recover.

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