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DigitalOcean Holdings Inc(DOCN)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for DOCN
10/28/2026: DOCN (3-star) is currently NOT-A-BUY. Pass it for now.
DigitalOcean Holdings Inc is a cloud computing provider focused on the specific needs of SMBs and independent developers, distinguishing itself through simplified services and transparent pricing. The company has historically delivered strong growth by building a loyal community and offering easy-to-use infrastructure products. Its primary growth opportunity lies in integrating AI and high-performance computing capabilities to capture emerging developer workloads. However, the company faces significant competition from well-capitalized hyperscalers, alongside execution risks related to maintaining a modern platform. The stock is generally suited for growth-oriented investors who can tolerate volatility, while the absence of dividends makes it less suitable for income-focused portfolios.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company offers growth potential through cloud services, though the growth rate has moderated from its earlier stages. |
| Momentum investor | Weak fit | The stock often experiences high volatility and has not recently demonstrated a consistent upward momentum trend. |
| Value investor | Weak fit | DigitalOcean often trades at a valuation premium typical of tech-growth companies rather than value-oriented metrics. |
| Dividend investor | Weak fit | The company does not pay a dividend and continues to prioritize capital reinvestment. |
| Low-risk investor | Weak fit | The stock is subject to significant price swings due to its tech-sector exposure and market sentiment sensitivity. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is prone to sharp fluctuations based on tech-market sentiment and quarterly growth reports. |
| Valuation risk | Medium / high | High growth expectations are often baked into the stock price, making it vulnerable to misses. |
| Competition risk (Hyperscaler competition) | High | The company competes against well-capitalized giants like Amazon, Google, and Microsoft. |
| Business quality | Medium | The platform is highly functional, but lacks the vast ecosystem and moat of major cloud providers. |
| Dividend income | Low / none | Investors should not rely on this stock for income generation. |
| Execution risk | Medium | Successful integration of acquisitions and maintenance of platform reliability are crucial for sustaining growth. |
Price Behavior
Rolling Over
The price momentum is slowing down and beginning to turn downward.
Extreme Price Shocks
The stock has experienced exceptionally large and disruptive price movements during the period.
Analysis of Past Performance
Type Stock | Historic Profit 88.53% | Avg. Invested days 40 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 10/28/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 12.44B USD | Price to earnings Ratio 49.03 | 1Y Target Price 173.8 |
Price to earnings Ratio 49.03 | 1Y Target Price 173.8 | ||
Volume (30-day avg) 2.8M shares | Beta 1.7 | 52 Weeks Range 37.84 - 187.50 | Updated Date 10/28/2026 |
52 Weeks Range 37.84 - 187.50 | Updated Date 10/28/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.17 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Compute Services | Revenue from virtual machines (Droplets) and Kubernetes services charged on a usage-based or monthly basis. | This is the core of their business, where they make money by renting computing power to developers. |
| Managed Services | Includes managed databases and App Platform, providing higher margin, automated backend services. | These products help the company increase revenue per user by offering more advanced, 'set-it-and-forget-it' tools. |
| Geography | Global operations with significant data center footprints across North America, Europe, and Asia. | The company has a global customer base, which provides diversification but also subjects them to varying regional economic conditions. |
Earnings Date
Report Date 2026-11-03 | When Before Market | Estimate 0.11 | Actual - |
Profitability
Profit Margin 23.27% | Operating Margin (TTM) 10.44% |
Management Effectiveness
Return on Assets (TTM) 3.86% | Return on Equity (TTM) 62.27% |
Valuation
Trailing PE 49.03 | Forward PE 52.08 | Enterprise Value 13.27B | Price to Sales(TTM) 12.37 |
Enterprise Value 13.27B | Price to Sales(TTM) 12.37 | ||
Enterprise Value to Revenue 12.33 | Enterprise Value to EBITDA 32.97 | Shares Outstanding 116.91M | Shares Floating 97.76M |
Shares Outstanding 116.91M | Shares Floating 97.76M | ||
Percent Insiders 16.63 | Percent Institutions 82.53 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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