Quality Momentum

QM · rank #1 · 2026-06-05

DOCN

NYSE · $18.10B

verdict · CAUTION

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+469.88%
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 2026-05-06
$160.99
Anchor (far)
Close on 2025-05-06
$28.25

The AI research card

Independent qualitative review of each pick before the order is placed.

Summary

DigitalOcean Holdings Inc provides cloud infrastructure services tailored for developers and small to medium-sized businesses.

Rationale

The strong momentum score of 4.6988, combined with a high return on equity (ROE) of 70% and a profit margin of 24.97%, suggests robust operational efficiency and growth potential.

Material risks

  • 1Dependence on a competitive cloud market with larger players could pressure margins and growth.
  • 2Potential volatility in customer demand due to economic conditions may impact revenue stability.

Verdict reasoning

two_stage score=+1/3 verdicts={'gemini': 'CAUTION', 'claude': 'CAUTION', 'openai': 'PROCEED'} brief=caller-supplied