Even the best growth companies will experience difficulties. for Digital ocean(NYSE: DOCN) and Public institution(Nasdaq’s stock code: PUBM)In recent years, weak income growth has always been a problem. The good news is that both companies are constantly developing. DIGITALOCEAN is developing artificial intelligence (AI), while Pubmatic has promoted growth through network TV and full -channel video advertising.
For investors looking for growth stocks with reasonable prices and double potential, DIGITALOCEAN and Pubmatic are the best choices.
The demand for artificial intelligence infrastructure is soaring. McKinsey estimates that by 2030, the compound annual growth rate of global data centers will be between 19% and 27%.
The largest participants in the cloud computing market are investing a lot of funds in artificial intelligence infrastructure. MicrosoftFor example, this year, it will invest 80 billion US dollars into the Artificial Intelligence Data Center, which is an amazing number. Some of these expenditures will support Microsoft’s own artificial intelligence products, and some will support customers to run artificial intelligence workloads on its Azure cloud platform.
Even in the era of artificial intelligence, the largest cloud platform is tailor -made for companies with a large number of IT budgets, not small developers and small enterprises. DIGITALOCEAN is famous as Azure’s simpler alternative solution Amazon Web service (AWS), now it can extend this advantage to the artificial intelligence infrastructure market.
DIGITALOCEAN acquired the artificial intelligence platform Paperspace in 2023, allowing the company to enter the artificial intelligence business. Last October, the company launched a virtual server with graphical processing unit (GPU), which directly brings artificial intelligence computing capabilities to existing customers. The next step is the GENAI platform, which is for customers who want to build and deploy artificial intelligence agents without managing infrastructure. DIGITALOCEAN puts simplicity first, and even people without any artificial intelligence professional knowledge can establish and manage artificial intelligence agents.
DigitalOcean’s valuation is less than $ 4 billion. The stock is reasonable compared to net profit, and the transaction price is about 23 times the income of analysts in 2024. Artificial intelligence can help the company to accelerate growth and tap huge market opportunities. DigitalOcean predicts that by 2027, its potential market will exceed $ 200 billion.
With huge market opportunities and the potential of Genai platform accelerating growth, DigitalOcean’s stock may become a big winner in the next few years.
Advertising may be a difficult business. With the exhaustion or transfer of advertising expenditures, advertisements may experience prosperity and depression. The epidemic triggered the decline in global advertising expenditure. Although the industry has rebounded, the growth of advertising expenditures is very sensitive to economic conditions and other factors.
PUBMATIC specifically helps digital publishers, content producers, and app developers profit through their content and applications. The company’s programmatic digital advertising platform aims to maximize customer income. PUBMATIC has a huge scale and handles 1.8 trillion advertisers daily.
Due to the severe advertising environment, Pubmatic’s growth slowly slowed in 2023, with revenue only 4%. Since then, the business has risen, and revenue in the third quarter of 2024 has increased by 13%annually. The revenue of full -channel films has grown by 25%, and the income of mobile application has soared by more than 20%.
Pubmatic owns and operates its own infrastructure, rather than using public cloud suppliers. Therefore, as long as the utilization rate is high, the company can effectively handle a large number of bid running through its platform. In the first nine months of 2024, as the company increased capital expenditure, Pubmatic’s free cash flow was US $ 26 million, a slight decrease from 2023. The market value of the stock is US $ 716 million, and its transaction price is about 20 times the average expected earnings per share after adjustment of analysts.
With Pubmatic’s stepping to CTV and other growth areas, the company can accelerate its income growth and eventually promote higher profits. As advertising technology stocks come out of the downturn, it may have a major recovery.
Did you feel that you have missed the opportunity to buy the most successful stocks? Then you will want to listen to this.
In a very few cases, our analysts and expert teams will release “Double Fall” stock It is recommended that they think they are about to be popular. If you are worried that you have missed investment opportunities, then it is the best time to buy, so as not to be too late. Number is self -evident:
Nvidia:If you invest in $ 1,000 when we invested in 2009,You will have $ 369,816!*
apple: If you invest in $ 1,000 when we invest in 2008, You will have $ 42,191!*
Netflix: If you invested 1,000 US dollars when you invested in 2004, You will have 527,206 US dollars!*
At present, we are issuing a “double decline” alert to the three incredible companies, and there may not be such opportunities in the short term.
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*As of January 21, 2025, the stock consultant returned
John Mackey is the former CEO of Amazon Son WHOLE FOODS MARKET and a member of the board of directors of the Motley Fool. Timothy Green works in DigitalOcean and Pubmatic. Motley Fool owns positions and recommended in Amazon, DigitalOcean, Microsoft and Pubmatic. Motley FOOL recommends the following options: In January 2026, Microsoft’s bullish options were 395 US dollars, and Microsoft’s options were 405 US dollars in January 2026. Motley FOOL has revealing policies.
The top growth stocks that can be easily doubled by two gears were originally published by The Motley Fool
