CompetitionThere is increased competition from major cloud providers like AWS, Azure, and GCP, which are offering incentives to startups and SMBs, posing a competitive threat to DigitalOcean.
Product Impact DelaysThe newer AI products of DigitalOcean, such as the Gradient AI Platform, are still too early to significantly impact growth.
Valuation ConcernsThe current pricing of DigitalOcean's stock is seen as balanced, with a fair valuation based on expected steady mid-teens growth, indicating limited immediate upside potential.