DigitalOcean (DOCN)
NYSEInformation TechnologySoftware - InfrastructureSnapshot 2026-10-29
$99.97-4.85%
Close 2026-10-29 · 1-day change
NYSEInformation TechnologySoftware - InfrastructureSnapshot 2026-10-29
Research Workspace
Put DOCN beside peers and holdings, graph the same metric, and keep your notes with the evidence.
Daily closes. Earnings/event dots are placed inline.
Industries move in repeating boom-and-bust cycles. This shows where this stock’s industry sits in that cycle, stage by stage (recovery → expansion → supercycle → steady → deceleration → contraction), from its fundamentals (orders, revenue, capital spending), not the stock’s price.
A booming industry is a tailwind for the names in it; a contracting one is a headwind. Companies in the same industry tend to rise and fall together with the cycle, the way a tide lifts and lowers every boat in the harbor at once, so a large part of a stock’s swing can come from where its industry sits rather than from the company itself. It’s context for reading the company’s results, not a buy/sell call. Full explanation →
Information Technology is in steady. Describes the industry's cycle state, not a call on this stock.
The stage band shows the industry’s cycle over the chart’s timeline (each color a stage); a ▼ marks a quarter its growth inflected down — amber is an unconfirmed watch, red is confirmed the next quarter. Use “Overlay cycle on chart” to tint the price chart by stage. The industry’s fundamentals, not a signal on this stock.
Primary pillar under pressure — Keep adjusted operating margin near 25% in Q1 2026: Comparison needs review.
View ThesisRevenue growth is accelerating — up about 21% over the past year.
View GrowthRanks in the weakest quality tier of its industry — roughly the bottom 36%, softest on share dilution.
View QualityManagement screens strong on capital allocation, margins, the balance sheet.
View ManagementExpectations look reasonable — what the market is pricing in sits in line with or below what analysts forecast.
View ValuationThis stock is highly volatile — it swings about 3% on a typical day and fell roughly 49% in its worst 12-month stretch.
View RiskDigitalOcean’s AI-Native Cloud focus needs to accelerate revenue growth. Revenue growth rose from 22% to 29%, with a Q2 FY2026 earnings beat. DOCN trades at 67× P/E versus a 34× peer median, despite modest expectations versus our view. The 13% next-quarter miss probability is a specific risk. Its adjusted operating-margin comparison needs review, so no confirmed breach is established. Peer multiples imply a price about 49% below where it trades; the thesis is on watch. This read is provisional.
Trailing returns as of 2026-10-29. DOCN is total return (includes dividends); the S&P 500 benchmark is price return (the index excludes dividends).
Based on 18 analysts currently covering DOCN (as of Oct 2026).
Based on 7 Wall Street analysts offering 12-month price targets for DOCN in the last 4 months.
Continue this research
Compare DOCN with peers and holdings, graph the same reported metric, keep your questions beside the evidence, and return when the facts change.
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| Compare | Company | Living FV | P/E | Revenue % | Quality |
|---|---|---|---|---|---|
| DOCN Selected company | Graph | Compare | Trend | Review | |
| Peer Add a competitor | Graph | Compare | Trend | Review | |
| Holding Compare a holding | Graph | Compare | Trend | Review |
Selected metric trend
Quarterly · checked companies · value or % of revenue
A consensus fair price across 9 valuation methods, at three horizons. As of 2026-10-29. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
Today's peer multiple on trailing earnings, with no growth credited. This is the headline read.
Adds projected growth, so it leans optimistic by design. Read it as upside context, not a base case.
A price-focused, side-by-side fair-value read versus Information Technology (broad) — fair value, gap to price, and forward P/E.
Our valuation methods disagree too much on this name right now. Rather than print a number we don't believe, we're holding it back until they converge.
Our valuation methods disagree too much on this name right now. Rather than print a number we don't believe, we're holding it back until they converge.
Compare the value case
Put DOCN next to peers and holdings, compare Living FV and multiples, then graph the driver behind the difference.
Advances: Accelerate revenue growth with AI-Native Cloud focus
Investment in AI aligns with growth acceleration objective.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
End-of-day figures as of 2026-10-29. EPS is implied from price ÷ P/E. Not investment advice.
Current $99.97
The last 12 months of price, then the range of analyst 12-month targets from today’s $99.97.
Analyst ratings and price targets are third-party Wall Street estimates, not QuarterlyIQ’s view. Not investment advice.
A long-thesis check that carries the widest uncertainty of the three horizons.
Below average on quality vs scored peers
A second lens on the 12-month fair value: for companies that score high on measured quality (profitability, balance-sheet safety, earnings stability), this read trusts more of today's profit margins instead of averaging them toward their multi-year history the way the headline number does. Shown alongside the fair value above, not in place of it. A diagnostic, not a price target or a buy/sell signal.
Direction of the business behind the multiple. Bands are backend reads; trailing-12-month basis.
Advances: Launch and expand DigitalOcean AI-Native Cloud
AI growth supports DigitalOcean's product expansion objective.
Advances: Focus on revenue growth
Launch of AI-Native Cloud directly supports revenue growth.
Advances: Focus on revenue growth
Analysts' positive outlook supports revenue growth potential.
Advances: Launch DigitalOcean AI-Native Cloud
Building edge in healthcare AI supports product development.
Advances: Focus on revenue growth
SWOT analysis highlights AI growth potential for revenue.