← Quality Momentum
QM · rank #4 · 2026-10-23
DOCN
NYSE · $11.60B (USD)
SignalStrong Buy4.7strength 4.7 / 10
verdict · PROCEED
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +282.06% |
|---|---|
| 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. | $11.60B |
| Anchor (recent) Close on 2026-09-23 | $141.21 |
| Anchor (far) Close on 2025-09-23 | $36.96 |
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 Holdings provides cloud infrastructure, developer tools, and managed AI/inference platforms tailored for developers, startups, and SMBs.
Rationale
The quality_momentum signal is validated by robust return on equity (62.3%), strong net margins (23.3%), 212% YoY growth in AI customer ARR, and raised FY2026 revenue and EBITDA guidance.
Material risks
- 1Large AI-native customers developing inference and orchestration capabilities in-house or migrating workloads to hyperscalers like AWS, Azure, or Google Cloud.
- 2Rapid feature replication by specialized and hyperscale cloud competitors creating tech-path commoditization and margin-eroding price competition.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.
OpenAI
Proceed
Claude
Caution
Gemini
Proceed