Fed Rate Cut Eases Debt Refinancing For Smaller Cloud Computing Firms: Analyst Flags 5 Stocks To Watch

The Federal Reserve’s decision to cut rates by a hefty 0.5% on Wednesday should be helpful to small- to medium-sized companies in the cloud computing space by making it easier for them to refinance debt, according to an analyst.

Piper Sandler analyst James Fisher pointed to five such firms in particular that may benefit the most, given their heavy debt loads: Bandwidth, Inc. (NASDAQ:BAND), DigitalOcean Holdings, Inc. (NYSE:DOCN), Fastly, Inc. (NYSE:FSLY), RingCentral, Inc. (NYSE:RNG), and Five9, Inc. (NASDAQ:FIVN).

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“A few names in our coverage will need to refinance debt over the next few years,” he wrote in a note on Wednesday.

He noted Bandwidth has $250 million in debt coming due in March 2026 and DigitalOcean has $1.5 billion in debt maturing in December 2026. He also pointed out Fastly needs to pay up $347 million by March 2026 and RingCentral has $609 million in debt coming due in March 2026.

He said lower interest rates may better help these companies better assume the interest costs on their debt.

Price Action: These companies all saw gains into Thursday’s late-morning trading.

• Bandwidth rose 1.61% to $17.64
• Digital Ocean gained 2.38% to $41.75
• Fastly picked up 2.98% to $7.25
• RingCentral went up 2.04% to $30.70
• Five9 went up 2% to $29.09

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