DOCN

DigitalOcean Holdings, Inc.

DigitalOcean Holdings, Inc.DOCN

Technology · Software - Infrastructure

146.00USD

-0.11%

Sep 23, 2026

DOCN overview ready

Developer-Oriented AI Cloud Stack Enabling Scalable Inference Workloads

DigitalOcean is an infrastructure provider offering a developer-oriented AI cloud stack for inference and agentic workloads alongside its established compute, storage, networking, Kubernetes, and managed-cloud services.

Strong narrative exposure

Exposed to the AI Compute Infrastructure Buildout narrative through AI Cloud Capacity and Powered Land — infrastructure supplier.

Advancing price action

Longer-term context reads extended trend, with a near-term setup of daily advance.

Demanding valuation

The price embeds expectations that run ahead of what comparable businesses command.

Fundamentals under pressure

Ev / ebitda is weak.

Primary risk

Intense competition from larger cloud providers.

Market Sep 22Filing Jun 30Price action Sep 22Research Sep 1

Conviction Level

Price

Loading price history…

Price Action

Advancing price action

Longer-term context reads extended trend, with a near-term setup of daily advance.

EntryReset + recovery

The stock remains extended from its long-term weekly base, but the recent reset toward the daily SMA100 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap: $17.2B
Avg Volume (60D): 3.0M
Revenue Growth YoY: +15.5%
Gross Margin: +57.2%
Operating Margin: +14.8%
Free Cash Flow Yield: +1.1%
Distance from 200DMA: +43.4%
Next Earnings: 2026-11-04
P/E: 73.0x
EV / EBITDA: 53.8x
EV / Sales: 17.1x

Market metrics as of Sep 22, 2026

Financial results for the period ended Jun 30, 2026

Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

All three valuation perspectives agree this company is expensive.

DigitalOcean Holdings, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command.

What changed

DOCN rose 12.3% in one session
DOCN closed +12.3% against a broad market that moved +1.6%.
2026-09-21

Company Research

Thesis

Opportunity

Moderate opportunity

Provisioning of AI-ready cloud compute capacity and the data-center/power infrastructure required to make that capacity available to customers.

Key risk

Intense competition from larger cloud providers.

Narrative & Theme

AI Compute Infrastructure Buildout

Part of AI Cloud Capacity and Powered Land, with strong fit.

DOCN is a real, direct participant in AI cloud capacity, not merely a generic software-adjacent name: it sells GPU-backed compute, inference services, data services, and agent-development tooling to customers deploying AI applications.

Narrative HeatHot9.5 / 10

Theme HeatHot8.8 / 10

This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Technology · Software - Infrastructure

What they do

DigitalOcean Holdings, Inc. operates a cloud infrastructure platform that enables technology companies to build, run, and scale intelligent applications globally through its compute, storage, and networking services.

How it earns

The company primarily generates revenue through subscription-based infrastructure-as-a-service offerings.

Products & services

Compute instances

Storage solutions

Networking products including cloud firewalls and managed load balancers

Virtual private cloud software

IP address management

Domain name system management

Customers & end markets

Growing technology companies

Digital native enterprises

Market position

Niche player focused on developer-friendly cloud infrastructure competing with larger cloud providers.

Demand drivers

Medium cyclicality

Demand for cloud infrastructure can fluctuate with technology investment cycles but is supported by ongoing digital transformation trends.