QM · rank #13 · 2026-09-04
DOCN
NYSE · $13.01B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +257.54% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +62.3% |
| Profit margin Net profit margin, trailing 12 months. | +23.3% |
| Market cap (USD) Size filter: > $500M required. | $13.01B |
| Anchor (recent) Close on 2026-08-05 | $124.46 |
| Anchor (far) Close on 2025-08-05 | $34.81 |
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 is an AI-native cloud and inference platform targeting developers and mid-market customers with GPU compute, managed services, and multi-year enterprise AI contracts anchored by NVIDIA Blackwell infrastructure.
Rationale
The quality_momentum signal is reinforced by 28–29% revenue growth, 40%+ adjusted EBITDA margins, 62% ROE, and an >$800M RPO backlog providing earnings visibility that justifies sustained price momentum rather than mere sentiment rotation.
Material risks
- 1Concentration risk in a handful of nine-figure multi-year AI contracts (e.g., Hippocratic AI) means a single renegotiation or customer in-house build-out could materially impair the RPO backlog that underpins the entire quality narrative.
- 2Hyperscale providers (AWS, Google, Azure) can undercut DOCN on GPU pricing and breadth, and any NVIDIA Blackwell supply disruption or export-control shock directly threatens the inference workload differentiation driving new contract wins.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.