NASDAQ · STOCK
DigitalOcean
$117.51
52W $25.56 – $187.50
51/100
$13.74B
45.4
1.57
Is DOCN Bullish or Bearish?
Mixed.
Innellis AI committee rates DigitalOcean (DOCN) Watch with a composite score of 51/100
, based on 7 analysts with 43% agreement.
Last updated July 31, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +8.57 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -11.43 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — eps growing 104.1% yoy. Value Analyst remains cautious — p/e of 59.4 is expensive by classic value standards. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- EPS growing 104.1% YoY — Growth
- 4 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Market regime is bullish (Bull market -- normal position sizing) — Macro
- Beta of 1.61 means this name should amplify a favorable market regime — Macro
- News sentiment is positive (+0.33 across 32 articles, 14d) — News
Bear Case
- P/E of 59.4 is expensive by classic value standards — Value
- Price-to-book of 51.6x prices in significant intangible value — Value
- ROE of only 1.8% -- cheap may mean cheap for a reason — Value
- Debt-to-equity of 30.91 adds balance-sheet risk to the value case — Value
- MACD histogram negative -- bearish momentum — Technical
- High leverage (debt-to-equity 30.91) amplifies downside in a stress scenario — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of July 31, 2026
Overall Committee Score
51/100
Agreement
43%
Analysts
7
Conviction
Contested
Sector Rank
Top 77%
of 172 Technology peers
Value Analyst
bearish
29
/ 100 · High confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
− P/E of 59.4 is expensive by classic value standards
Growth Analyst
bullish
79
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 104.1% YoY
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst
bearish
33
/ 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 30.91) amplifies downside in a stress scenario
Macro Analyst
neutral
58
/ 100 · Moderate confidence
Macro backdrop is mixed or neutral -- not a strong tailwind or headwind either way
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
68
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.33 across 32 articles, 14d)
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2744.14)
Investment Thesis Evolution
Committee score moved marginally from 51.1 to 51.4.
- New bearish signals: 4 appeared.
- New bullish signals: 2 appeared.
- Bearish pressure eased: 5 signal(s) disappeared.
- Analyst(s) changed stance: Macro Analyst, Technical Analyst.
Analyst-level changes:
- Macro Analyst: stance bullish->neutral; score 65->58 (-8); +2 bullish signal(s).
- Portfolio Manager: +2 bearish signal(s).
- Risk Analyst: +1 bearish signal(s).
- Technical Analyst: stance bearish->neutral; score 38->48 (+10).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-07-30 to 2026-07-31 (1 day apart).
Technical Analysis
RSI (14)
43.6
Neutral
MACD Histogram
-0.345
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$51.19
Resistance
$133.29
Bollinger %B
0.30
Inside Bands
Price vs Moving Averages
EMA 9
$120.05
Below
EMA 21
$127.54
Below
EMA 50
$133.49
Below
EMA 200
$98.83
Above
Fundamental Analysis
Valuation
33
Growth
81
Profitability
1
Financial Health
65
Cash Flow
35
Valuation
P/E Ratio
45.4×
P/B Ratio
12.32×
PEG Ratio
0.39
Dividend Yield
0.00%
52W High
$187.50
52W Low
$25.56
Quality & Growth
ROE
-903.7%
ROA
14.1%
Gross Margin
58.5%
Operating Margin
16.4%
Revenue Growth YoY
—
Debt / Equity
1.01
AI Fundamental Assessment
P/E ratio of 45.4 (rich relative to a 15-40x range); Price-to-book of 12.3x; PEG ratio of 0.4 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -9.0%; Return on assets of 0.1%; Net margin of 0.2%; Gross margin of 0.6%; Current ratio of 1.46 (tight short-term liquidity); Debt-to-equity of 1.01; Free cash flow margin of 0.0% (thin cash generation); Free cash flow per share is positive (0.11); Most recent quarter beat estimates by 62.6%; 4 consecutive earnings beats; EPS growth accelerating (-18.5% -> +0.0% QoQ); Analyst estimates falling over recent quarters
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