DigitalOcean Holdings (DOCN): A Steady Path to Quality Excellence

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Soumya Eswaran

Mon, May 25, 2026 astatine 11:28 AM CDT 3 min read

Fred Alger Management, an concern absorption company, released its “Alger Weatherbie Specialized Growth Fund” first-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the archetypal 4th of 2026, the Class A shares of the Alger Weatherbie Specialized Growth Fund underperformed the Russell 2500 Growth Index. The Information Technology and Consumer Staples sectors contributed to the comparative performance, portion Health Care and Financials detracted. US equities experienced volatility successful the archetypal 4th of 2026, with the S&P 500 Index falling 4.33%. The AI disruption and the U.S.-Iran struggle altered the economical scenery during this period. The Fund focuses connected identifying companies that are leveraging AI exertion for task automation and workflow management. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Alger Weatherbie Specialized Growth Fund highlighted DigitalOcean Holdings, Inc. (NYSE:DOCN). DigitalOcean Holdings, Inc. (NYSE:DOCN) is an agentic inference unreality level enabling AI and Digital Native Enterprises to build, run, and standard intelligent applications. On May 22, 2026, DigitalOcean Holdings, Inc. (NYSE:DOCN) closed astatine $158.46 per share. One-month instrumentality of DigitalOcean Holdings, Inc. (NYSE:DOCN) was 60.14%, and its shares gained 466.13% implicit the past 52 weeks. DigitalOcean Holdings, Inc. (NYSE:DOCN) has a marketplace capitalization of $16.54 billion.

Alger Weatherbie Specialized Growth Fund stated the pursuing regarding DigitalOcean Holdings, Inc. (NYSE:DOCN) successful its Q1 2026 capitalist letter:

"DigitalOcean Holdings, Inc. (NYSE:DOCN) is simply a unreality infrastructure supplier that offers scalable computing, storage, and networking solutions tailored to startups, tiny and mid-sized businesses, and idiosyncratic developers. The institution has differentiated itself by delivering a simplified, developer-friendly level that lowers the obstruction to unreality adoption for customers who whitethorn beryllium underserved by the larger hyperscale providers. During the quarter, shares contributed positively to show aft the institution delivered a beardown fiscal fourth-quarter study that exceeded expectations connected some gross and profitability. Net caller yearly recurring gross reached a grounds level, nett gross retention accelerated, and the company’s largest customers emerged arsenic an progressively meaningful maturation operator — reinforcing a concern that we judge is steadily moving up the prime curve. Additionally, absorption outlined an encouraging multi-year maturation framework."

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