DailyIQ
|
Last updated9 minutes ago

DOCN·DigitalOcean Holdings Inc.

$128.23
-3.18 (-2.42%)
Overnight$128.27+0.04 (+0.03%)
High
$133.79
Open
$125.29
Market Cap
15.45B
52W High
$187.50
Low
$125.00
P. Close
$128.23
P/E
65.68
52W Low
$35.64
Fwd P/E
69.62
DailyIQ Est.
$181.50
Inst. Ownership
42.8%
Short Interest
9.04%
Days to Cover
3.6
Technical Score (1D)
50
NEUTRAL
News Sentiment
61
BULLISH
On Oct 13, DigitalOcean Holdings announced a suite of AI‑focused initiatives, including a partnership with Bright Data and the launch of Agent Learning and Data Services, designed to incorporate real‑world web data into its tooling. The announcement came amid a modest dip in the company’s share price, while its year‑to‑date performance remained robust with a 162% return. Analysts noted that the AI initiatives reinforced DigitalOcean’s narrative as a growing player in the AI infrastructure space, potentially boosting demand for its services. The company’s valuation remained contested, with estimates ranging from 27% undervalued to a fair value of $175.20, reflecting investor uncertainty about the timing of entry versus a possible reset. Overall, the AI expansion was viewed as a positive catalyst for future revenue growth, though the precise impact on valuation was still debated. Investors were weighing the timing of entry against a potential reset in the valuation landscape.
LOW TARGET
$140 +9.2%
1 analysts
MEAN TARGET
$175 +36.6%
13 analysts
HIGH TARGET
$200 +56.0%
12 analysts
PRICE RANGE
$140.00 - $200.00
SB / B / H / S / SS
8/12/4/1/1
DAILYIQ EST.
$181.50 (+41.6%)
Bought (1Y)
0 shares
$0
Sold (1Y)
199,437 shares
$26.8M
JENSON WARREN-
Award/Grant152 shares2026-09-30
Kumar Vinay S.Chief Product & Tech Officer
Tax Withholding40,022 shares2026-09-30
Adelman Warren J-
Award/Grant186 shares2026-09-30
SCHNEIDER HILARY-
Award/Grant147 shares2026-09-30
Arora Pratima-
Award/Grant122 shares2026-09-30
View full insider trading history →
78/ 100
Bullish
Overall: Bullish
✓Revenue growing year over year
✓Positive net margin
✓Positive operating cash flow
Gross Margin
59.9%
Net Margin
28.8%
Revenue CAGR
23.4%
Current Ratio
0.69x
Debt / Equity
-45.16x
Return on Equity
-903.7%
View full financials →

EPS

EstBeatMiss
$0.28$0.36$0.43$0.50$0.57Q3'25Q3'26
QtrEstActual+/−
Q3'26$0.32 - -
Q3'25$0.49$0.54+9.5%

Revenue

EstBeatMiss
$217M$244M$271M$298M$325MQ3'25Q3'26
QtrEstActual+/−
Q3'26$313M - -
Q3'25 - $230M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
→

Market Data

DOCN Stock Snapshot

NEUTRAL50/100
$128.27+$0.04 (0.0%)
Market cap
15.45B
P/E ratio
65.7
Day range
$125.00 – $133.79
News sentiment
61/100 · Bullish
Analyst target
$175.20 (+36.6%)
Consensus
Buy · 26 analysts
52-week range+259.9% off low · -31.6% from high
$35.64$187.50
Price $128.27 DailyIQ Est. $181.50

Neither side has the upper hand on DOCN right now, and its momentum ranks near the middle of DailyIQ's universe. Earnings and guidance carry more weight than macro data at this capitalisation.

Reverse DCF

What growth is priced into DOCN?

RICH

At today's price, DigitalOcean Holdings Inc. needs to grow free cash flow about 60.4% a year for the next 10 years to justify its valuation at a 13.47% cost of capital. Over its actual history it has compounded free cash flow at 40.3% a year, so the market is asking for 20.1 percentage points above its own delivered rate. On that basis DOCN looks priced above what its own growth record supports.

Implied FCF growth
60.4%
Historical FCF CAGR
40.3%
Growth gap
+20.1 pts
Verdict
RICH
Discount rate (WACC)
13.47%
Beta
1.77

Behaviour On Record

What DOCN's own history says about today's numbers

Realized volatility (21d)
73.6% 64th pct
Below its peak
-25.6%
vs 200-day average
+25.8%
Up days (1y)
47%

DigitalOcean Holdings Inc. is currently running 73.6% annualised volatility over the last 21 sessions. Measured against DOCN's own 5 years of daily returns rather than a market-wide average, that is the 64th percentile — a little above its own norm, against a typical reading of 65.4%. The distinction matters because a number that looks calm for one stock is turbulent for another, and the absolute figure on its own tells you neither.

DOCN is trading -25.6% below its running peak. Across 4 full years on file, its median worst-drawdown-in-a-year was -53.0%, and the deepest was -68.7% in 2022. The current pullback is therefore shallower than what this stock gives back in a typical year, which is context worth having before treating it as a dislocation.

Price sits +25.8% from its 200-day moving average. Against every other day in its history, that gap ranks at the 79th percentile — a somewhat wider gap than its own norm. Over the past year DOCN closed higher on 47% of sessions, and it is currently 1 session into a rising streak.

On October specifically: over 5 years of records, DOCN finished the month higher 3 of 5 times, with a median return of +4.2% and an average of +3.7%. Its strongest month historically has been May at +13.2% on average, its weakest April at -9.3%. Seasonality is a weak signal on its own — a decade is a small sample and regimes change — but it is a real distribution rather than a rule of thumb.

Overnight risk is measurable too: DOCN has opened more than 2% away from the prior close in 258 of 1,393 sessions (18.5% of the time), with the largest gaps running +6.1% and -6.8%. For anyone holding through an event, that rate is a better guide to overnight exposure than the intraday range.

All figures computed from 1,394 daily closes between 2021-03-24 and 2026-10-09, split-adjusted, recomputed daily. Percentiles are against DOCN's own 6-year history, not a peer group or index.

Sector Rotation

Is money rotating into or out of DOCN's sector?

DigitalOcean Holdings Inc. sits in the Software sector, currently ranked 2nd of 12 GICS sectors by relative-strength rotation score (weakening). Within its narrower Software industry group, DOCN ranks 2nd of 15 tracked industries, weakening.

Sector rank
#2 of 12
Sector state
Weakening
Sector rotation score
91
Industry rank
#2 of 15

Options Market

What is the options market pricing for DOCN?

CallsPuts

For DigitalOcean Holdings Inc.'s nearest expiry (2026-10-16, 2 days out), open interest is call-heavy, a bullish tilt (put/call ratio of 0.71), with at-the-money implied volatility around 93.4%. The options market is pricing roughly a ±7.2% move by that expiry — a range of about $125.35–$144.67.

Put/call ratio (2026-10-16)
0.71
ATM implied volatility
93.4%
Total open interest
21,554
Expected move by 2026-10-16
±7.2% ($125.35–$144.67)

Analyst Rating Changes

Are analysts turning bullish or bearish on DOCN?

Truist Securities most recently initiated coverage on DigitalOcean Holdings Inc. to Buy on Aug 27, 2026 with a price target of $175. Over the last 90 days, coverage has run 1 upgrade against 0 downgrades, a net bullish lean.

Latest action
Truist Securities — Buy
90-day upgrades
1
90-day downgrades
0
Net rating momentum
+1
DateFirmActionRatingPrice target
Aug 27, 2026Truist SecuritiesInitiatedBuy$175
Aug 5, 2026UBSMaintainedNeutral$155 → $140
Aug 5, 2026CitigroupMaintainedBuy$185 → $190
Aug 5, 2026BarclaysMaintainedOverweight$160 → $161
Jul 22, 2026BairdInitiatedOutperform$165
Jul 22, 2026StifelUpgradeHold → Buy$135 → $160
Jul 21, 2026BarclaysMaintainedOverweight$184 → $160
Jul 10, 2026Canaccord GenuityMaintainedBuy$200
Jul 8, 2026UBSMaintainedNeutral$175 → $155
Jul 8, 2026CitigroupMaintainedBuy$180 → $185
Jul 8, 2026BarclaysMaintainedOverweight$183 → $184
Jun 11, 2026Canaccord GenuityMaintainedBuy$200

ETF holders

ETFs holding DOCN

Top ETF holdersWeight

News Sentiment Analysis

Sentiment gathered from recent headlines

61/100
Strong NegativeNeutralStrong Positive
MODERATELY BULLISH

Recent News Coverage

Most recent articles, ranked by recency (click to expand).

10+ articles
What did this article say?
DigitalOcean Holdings announced a suite of AI‑focused initiatives, including a partnership with Bright Data and new Agent Learning and Data Services, to deepen its agent tooling with real‑world web data. The company’s share price dipped slightly that day, but the broader market reaction remained positive, reflecting continued investor enthusiasm. Year‑to‑date returns of roughly 162% and a 1‑year total shareholder return of about 217% underscore the growing traction of DigitalOcean’s AI strategy. The announcement signals a tangible expansion of the firm’s AI infrastructure capabilities, positioning it to compete more aggressively in the cloud‑based AI services space.
What did this article say?
DigitalOcean (DOCN) is forecasted to achieve 50% revenue growth by 2027, accompanied by increasing free cash flow. The company’s valuation is expected to rise, reflecting confidence in its growth trajectory. However, the analysis notes existing risks that could temper the upside. The projection underscores a bullish outlook for the firm’s future performance.
What did this article say?
DigitalOcean Holdings announced Agent Droplets, a subscription-based offering that bundles managed AI agent runtime, tool access, serverless inference, and persistent memory into a single monthly plan. The new product aims to lower the barrier for companies adopting agentic technologies by providing predictable pricing and eliminating the need to assemble individual components. Two tiers—Pro at $50 and Team at $200—include discounts on all resources, positioning DigitalOcean as a cost‑effective platform for AI workloads. The launch builds on the company’s existing Managed Agents service, expanding its AI‑native cloud portfolio and potentially attracting new customers seeking streamlined agent deployment.
What did this article say?
DigitalOcean Holdings (DOCN) conducted its second‑quarter 2026 earnings conference call on September 25. The transcript was made publicly available through Benzinga’s API. The call provided a detailed overview of the company’s financial performance, operational highlights, and guidance for the remainder of the year. No specific earnings figures or forward guidance were disclosed in the summary provided. The release serves as a routine disclosure of the company’s quarterly results.
What did this article say?
DigitalOcean (DOCN) has launched a public preview of its Managed Agents platform, bundling agent runtime, governed tool access, and serverless inference into a single service. The offering is designed to simplify AI agent development by eliminating infrastructure management, and it already supports frameworks used by OpenHands, Qencode, and Amplitude. By providing a ready‑made environment, DOCN aims to attract developers seeking rapid AI deployment without deep ops expertise. The preview signals DOCN’s push into the growing AI services market, potentially expanding its cloud customer base. The platform’s success will depend on adoption speed and integration depth with existing AI toolchains.
What did this article say?
DigitalOcean has launched a public preview of Managed Agents, a new service that bundles isolated harness runtimes, governed tool access, and serverless inference into a single platform. The offering allows developers to attach their existing harnesses, connect to over 16,000 tools, and run inference across 75+ models without managing infrastructure. By charging only when agents are active, the solution promises cost‑efficiency and scalability for agent‑centric workloads. The move positions DOCN as a more complete AI‑native cloud provider, potentially attracting developers seeking a plug‑and‑play AI stack.
What did this article say?
DigitalOcean (DOCN) exceeded revenue expectations and lifted its full‑year EPS guidance, signaling stronger top‑line growth. The company also announced a new $725 million equipment‑finance facility to expand its AI‑native cloud capacity, providing additional capital for infrastructure investment. These developments suggest a positive trajectory for the platform and reinforce investor confidence in DOCN’s growth prospects.
What did this article say?
DigitalOcean’s stock advanced 12.8% after Treasury yields fell and U.S.–China tensions eased, providing a broader market lift for software names. The move was driven by macro‑economic factors rather than new company data, indicating a temporary, risk‑appetite‑driven rally.
What did this article say?
DigitalOcean posted Q2 revenue of $281.2 million, a 28.6% year‑over‑year increase, beating consensus estimates. The company’s guidance for the next quarter is 3.3% below analyst expectations, tempering the upside. Despite the guidance dip, the strong revenue growth and solid operating margin suggest continued demand for its developer‑friendly cloud platform.
What did this article say?
DigitalOcean secured a $725 million equipment‑finance facility to expand GPU and CPU capacity for its AI‑Native Cloud business. The loan, arranged with MUFG and other banks, aligns cash outflows with revenue at an attractive cost of capital, reflecting the company’s strong financial position. The facility supports a $894 million performance‑obligation pipeline in Q2, up 12‑fold YoY, and confirms existing AI demand. Following a 29% YoY revenue growth, DigitalOcean raised its full‑year outlook, underscoring the material upside of this financing.

Technical Analysis

Real-time indicators across multiple timeframes

50
NEUTRAL
Momentum rank against about 1,000 stocks and ETFs for this timeframe.
Unlock full technicals
Create a free account to access more indicators and deeper timeframe data.
Institutional & Hedge Fund Ownership
25 tracked managers · $6.91B combined position · 13 adding, 12 trimming, 0 unchanged (latest 13F filings)
ManagerTrendShares Held% of Co.Position ValueFiled
JPMorgan Chase & Co▲ Buy13,850,20611.50%$2.08B2026-08-12
BlackRock, Inc.▼ Sell8,793,2057.30%$1.38B2026-08-07
Vanguard Group Inc▼ Sell9,004,9307.48%$433.32M2026-01-29
Two Sigma Investments, LP▲ Buy1,886,6321.57%$296.26M2026-08-14
Geode Capital Management, LLC▲ Buy1,885,8611.57%$296.20M2026-08-12
Citadel Advisors LLC▼ Sell1,765,4251.47%$277.22M2026-09-02
Goldman Sachs Group Inc▼ Sell1,682,1831.40%$264.15M2026-08-14
FMR LLC (Fidelity)▲ Buy1,583,0161.31%$248.58M2026-08-13
Wellington Management Group LLP▼ Sell1,573,2951.31%$247.05M2026-08-14
Bank of America Corp▼ Sell1,540,7541.28%$241.94M2026-08-14
Neuberger Berman Group LLC▲ Buy1,170,8730.97%$183.86M2026-08-13
D. E. Shaw & Co., Inc.▲ Buy880,5720.73%$138.28M2026-08-14
Invesco Ltd.▲ Buy776,9090.64%$122.00M2026-08-14
Northern Trust Corp▼ Sell734,9710.61%$115.41M2026-08-13
Morgan Stanley▼ Sell717,1870.60%$112.62M2026-08-13
Wells Fargo & Company▲ Buy520,5660.43%$81.74M2026-08-14
AllianceBernstein L.P.▼ Sell929,6780.77%$79.75M2026-08-14
Susquehanna International Group, LLP▲ Buy477,1680.40%$74.93M2026-08-14
Point72 Asset Management, L.P.▼ Sell456,8660.38%$71.74M2026-08-14
Millennium Management LLC▲ Buy399,8520.33%$62.79M2026-08-14
Citigroup Inc▼ Sell235,7050.20%$37.01M2026-08-03
Squarepoint Ops LLC▲ Buy160,1960.13%$25.16M2026-08-14
Polen Capital Management LLC▲ Buy101,3500.08%$15.91M2026-08-04
Balyasny Asset Management L.P.▼ Sell97,5640.08%$15.32M2026-08-14
ExodusPoint Capital Management, LP▲ Buy97,3640.08%$15.29M2026-08-14
Q2 2026 flow:13.40M sh bought ($2.04B)7.69M sh sold ($1.11B)net +5.71M sh (+$927.28M)
View full institutional holdings history →

Discover More

GWRE
Guidewire Software Inc.
$165.78
-0.05%
FTNT
Fortinet, Inc.
$190.46
-0.17%
AUR
Aurora Innovation Inc. Class A
$5.38
+0.65%
APP
Applovin Corporation
$272.07
-0.03%
DT
Dynatrace Inc.
$64.58
+0.19%
NBIS
Nebius Group N.V.
$208.80
+0.88%
PTC
PTC Inc.
$193.96
-0.01%
TTWO
Take-Two Interactive Software, Inc.
$200.76
+0.22%
CSGP
CoStar Group, Inc.
$29.41
-2.00%
FIG
Figma Inc. Class A
$21.75
-0.05%