DOCN · NYSE · STOCK
DigitalOcean (DOCN) Stock Analysis
$134.90
52W $37.50 – $187.50
55/100
$15.76B
53.5
1.70
Is DOCN Bullish or Bearish?
Mixed.
Innellis AI committee rates DigitalOcean (DOCN) Watch with a composite score of 55/100
, based on 6 analysts with 67% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +4.62 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -15.38 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — eps growing 70.6% yoy. Value Analyst remains cautious — p/e of 67.4 is expensive by classic value standards. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- EPS growing 70.6% YoY — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
- Weekly trend (uptrend) confirms the daily trend -- multi-timeframe agreement — Technical
- News sentiment is positive (+0.25 across 8 articles, 14d) — News
Bear Case
- P/E of 67.4 is expensive by classic value standards — Value
- Price-to-book of 51.6x prices in significant intangible value — Value
- Debt-to-equity of 30.91 adds balance-sheet risk to the value case — Value
- MACD histogram negative -- bearish momentum — Technical
- High leverage (debt-to-equity 30.91) amplifies downside in a stress scenario — Risk
- Current ratio of 0.69 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
55/100
Agreement
67%
Analysts
6
Conviction
Contested
Sector Rank
Top 72%
of 287 Technology peers
Value Analyst
bearish
28
/ 100 · Moderate confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
− P/E of 67.4 is expensive by classic value standards
Growth Analyst
bullish
79
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 70.6% YoY
Technical Analyst
bullish
61
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− MACD histogram negative -- bearish momentum
Risk Analyst
bearish
33
/ 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 30.91) amplifies downside in a stress scenario
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
66
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.25 across 8 articles, 14d)
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 55.4 to 55.4.
- New bearish signals: 2 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
Analyst-level changes:
- Risk Analyst: +1 bearish signal(s).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
53.4
Neutral
MACD Histogram
-1.297
Bearish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Mixed
Support
$106.44
Resistance
$187.19
Bollinger %B
0.53
Inside Bands
Price vs Moving Averages
EMA 9
$132.69
Above
EMA 21
$131.92
Above
EMA 50
$129.72
Above
EMA 200
$109.73
Above
Fundamental Analysis
Valuation
33
Growth
57
Profitability
73
Financial Health
44
Cash Flow
70
Valuation
P/E Ratio
53.5×
P/B Ratio
15.15×
PEG Ratio
0.66
Dividend Yield
0.00%
52W High
$187.50
52W Low
$37.50
Quality & Growth
ROE
—
ROA
1410.8%
Gross Margin
5722.2%
Operating Margin
1480.2%
Revenue Growth YoY
—
Debt / Equity
1.61
AI Fundamental Assessment
P/E ratio of 53.5 (rich relative to a 15-40x range); Price-to-book of 15.2x; PEG ratio of 0.7 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -903.7%; Return on assets of 14.1%; Net margin of 23.3%; Gross margin of 57.2%; Current ratio of 1.31 (tight short-term liquidity); Debt-to-equity of 1.61; Free cash flow per share is positive (0.14); Most recent quarter beat estimates by 69.4%; 5 consecutive earnings beats; EPS growth accelerating (+0.0% -> +2.3% QoQ); Average YoY EPS growth of -23.7%; Analyst estimates falling over recent quarters
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