QM · rank #5 · 2026-10-26
DOCN
NYSE · $10.90B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +298.15% |
|---|---|
| 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. | $10.90B |
| Anchor (recent) Close on 2026-09-25 | $139.75 |
| Anchor (far) Close on 2025-09-26 | $35.10 |
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 Inc provides cloud infrastructure, developer tools, serverless inference, and managed AI agent orchestration for software developers and SMBs.
Rationale
The quality_momentum signal is validated by high profitability (23.3% net margin, 62.3% ROE, 40% Q2 adjusted EBITDA margin) alongside 29% YoY revenue growth and raised FY2026 guidance to $1.170–1.180 billion.
Material risks
- 1Tech-path commoditization and pricing pressure as hyperscalers and specialized AI clouds replicate managed-agent, inference, and developer-tool features.
- 2Leverage and capacity utilization risks stemming from the $725 million equipment-financing facility if AI ARR growth slows or customer retention weakens.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.