DOCN · NASDAQ · STOCK
DigitalOcean
$123.98
52W $28.79 – $187.50
56/100
$14.51B
49.3
1.57
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is DOCN Bullish or Bearish?
Bullish.
Innellis AI committee rates DigitalOcean (DOCN) Buy with a composite score of 56/100
, based on 6 analysts with 50% agreement.
Last updated August 08, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +19.18 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -0.82 from today. The band boundary is 60.0, 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 62.1 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
- MACD histogram positive -- bullish momentum — Technical
- Market regime is bullish (Bull market -- normal position sizing) — Macro
- Beta of 1.76 means this name should amplify a favorable market regime — Macro
Bear Case
- P/E of 62.1 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
- 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
- Bollinger bandwidth of 26.0% signals elevated volatility — 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 August 08, 2026
Overall Committee Score
56/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 75%
of 172 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 62.1 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
neutral
58
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish 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
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
66
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.27 across 33 articles, 14d)
Portfolio Manager
neutral
55
/ 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score weakened from 62.4 to 55.8.
- Committee agreement fell notably from 60% to 50%.
- New bearish signals: 6 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 3 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
- New analyst(s) joined: Value Analyst.
Analyst-level changes:
- Growth Analyst: score 82->79 (-4); +1 bullish signal(s).
- Macro Analyst: +1 bullish signal(s).
- News Analyst: +1 bullish signal(s).
- Risk Analyst: +3 bearish signal(s).
- Value Analyst joined: bearish at 28.
Comparing 2026-08-07 to 2026-08-08 (1 day apart).
Technical Analysis
RSI (14)
49.8
Neutral
MACD Histogram
1.419
Bullish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$51.19
Resistance
$133.29
Bollinger %B
0.53
Inside Bands
Price vs Moving Averages
EMA 9
$123.23
Above
EMA 21
$126.61
Below
EMA 50
$131.99
Below
EMA 200
$100.12
Above
Fundamental Analysis
Valuation
33
Growth
57
Profitability
73
Financial Health
44
Cash Flow
70
Valuation
P/E Ratio
49.3×
P/B Ratio
13.95×
PEG Ratio
0.61
Dividend Yield
0.00%
52W High
$187.50
52W Low
$28.79
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 49.3 (rich relative to a 15-40x range); Price-to-book of 14.0x; PEG ratio of 0.6 (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 71.1%; 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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