← Quality Momentum
QM · rank #8 · 2026-06-04
DOCN
NYSE · $18.10B
verdict · PROCEED
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +366.33% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +70.0% |
| Profit margin Net profit margin, trailing 12 months. | +25.0% |
| Market cap Size filter: > $500M required. | $18.10B |
| Anchor (recent) Close on 2026-05-05 | $152.77 |
| Anchor (far) Close on 2025-05-05 | $32.76 |
The AI research card
Independent qualitative review of each pick before the order is placed.
Summary
DigitalOcean Holdings Inc. is a cloud computing and AI-native infrastructure provider offering on-demand infrastructure and platform tools primarily for developers, startups, and small-to-medium-sized businesses globally.
Rationale
The strong momentum_12_1 signal, combined with solid profitability metrics (roe_ttm and profit_margin), suggests that DOCN is experiencing both strong price appreciation and underlying business quality, aligning with a quality_momentum strategy.
Material risks
- 1Intense competition from hyperscale cloud providers and the need for continuous investment in AI technologies pose a significant challenge to DigitalOcean's market share and profitability.
- 2DigitalOcean's stock price may be volatile due to fluctuations in financial results, changes in pricing, or significant data breaches, which could negatively impact investor confidence.
Verdict reasoning
two_stage score=+2/3 verdicts={'openai': 'PROCEED', 'claude': 'CAUTION', 'gemini': 'PROCEED'} brief=caller-supplied