QM · rank #7 · 2026-10-27
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, inference, and managed-agent tools for developers and smaller businesses across GPU/CPU, data, and platform services.
Rationale
The name fits quality_momentum because the stock has strong 12-month momentum alongside high ROE and healthy margins, while recent AI-agent launches, 29% ARR growth, and raised FY26 guidance support the fundamental trend.
Material risks
- 1AWS, Azure, GCP, CoreWeave, and Lambda Labs can outspend DigitalOcean on GPU and AI platform capabilities, potentially commoditizing its differentiation.
- 2The business still depends on third-party capacity buildout and equipment supply, so delays or weaker AI demand could slow realization of the growth story.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.