QM · rank #4 · 2026-07-27
DOCN
NYSE · $15.95B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +392.85% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +70.0% |
| Profit margin Net profit margin, trailing 12 months. | +25.0% |
| Market cap (USD) Size filter: > $500M required. | $15.95B |
| Anchor (recent) Close on 2026-06-26 | $139.28 |
| Anchor (far) Close on 2025-06-27 | $28.26 |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
DigitalOcean (DOCN) is a software infrastructure cloud provider repositioning itself as an AI-native/agentic inference platform serving developers, startups, and SMBs with integrated GPU, core cloud, inference, and orchestration services.
Rationale
The signal fits a quality-momentum setup: the stock has strong 12-1 momentum, while reported ROE and profit margins are solid and Q1 2026 showed 22% revenue growth plus upwardly revised revenue outlook tied to accelerating AI ARR.
Material risks
- 1Margin compression from higher data-center, infrastructure, and financing costs could keep earnings growth below revenue growth and weaken the “quality” leg of the trade.
- 2DOCN competes in a crowded, price-sensitive cloud market against hyperscalers and GPU/inference specialists, so the AI-native repositioning could be commoditized if customer adoption or pricing power slips.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.