Two Potential High-Growth Shares Likely to More Than Double
Even top growth companies can hit rough patches, as seen with DigitalOcean (DOCN 3.74%) and PubMatic (PUBM -1.06%). However, these tech giants are bouncing back with innovative strategies.
DigitalOcean is embracing the AI craze, a market projected to grow at a compound annual rate of 19-27% through 2030 (McKinsey estimate). With heavyweights like Microsoft pouring $80 billion into AI-enabled data centers this year, smaller players like DigitalOcean are finding their niche. By acquiring AI platform Paperspace in 2023 and introducing GPUs for AI compute capacity, DigitalOcean caters to the growing AI infrastructure demand. Their GenAI Platform, set to simplify AI application development, aims to give even AI beginners the tools they need.
Meanwhile, PubMatic, an adtech leader, is focusing on connected TV and omnichannel video ads to drive growth. After a sluggish 4% revenue increase in 2023, the third quarter of 2024 saw a 13% year-over-year surge, with CTV impressions doubling and revenue from omnichannel video jumping 25%. PubMatic's private cloud infrastructure helps manage costs and performance, while its adtech solutions cater to various formats and devices.
Investors looking for reasonably priced growth stocks with the potential to double should consider DigitalOcean and PubMatic. The former's focus on AI and simplification has set its sights on the $200 billion AI development sector, while PubMatic's recovery in adtech is promising.
[1] Source: DigitalOcean investor presentation, March 2024[2] Source: PubMatic Q3 2024 earnings report[3] Source: PubMatic investor presentation, March 2024[5] Source: Enrichment Data on AI platforms in the cloud computing market, April 2024
After recognizing the potential of the AI market, DigitalOcean is actively investing in this sector, seeking to benefit from its projected growth of 19-27% annually until 2030.
In an effort to cut costs and boost performance, PubMatic is leveraging its private cloud infrastructure within its finance strategy.
