Equity analyst downgrades do not link recent performance to fundamental changes, shifts
The cloud infrastructure sector continues to face headwinds and there has been deceleration in revenue growth across public cloud platforms, managed infrastructure and subscale providers. Some equity analysts have responded to the recent earnings reports and downgraded certain stocks such as DigitalOcean. We will not comment on the ins and outs of stocks, but the decision to downgrade and the bearish outlook is being made on some relatively faulty assumptions.
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