DOCN Stock Analysis: Buy, Sell, or Hold?
DOCN - DigitalOcean Holdings, Inc.
$130.49
-10.35 (-7.35%)
▼
5d:
+0.28%
30d:
-22.48%
90d:
+49.7%
BUY
HIGH Confidence
Analysis Updated: Jul 10, 2026 12:00 AM ET
Earnings: Aug 04, 2026
21d
Smart Money Accumulation
None View Scanner →
Strength: 4.6/10
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3 traders called DOCN this week
67% bullish • 1 bearish
67% bullish • 1 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: DOCN shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
✅ BUY SIGNAL: DOCN shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$87.34
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$54.23
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DOCN is currently trading at $130.49, which is considered oversold relative to its 30-day fair value range of $142.22 to $175.63. From a valuation perspective, the stock is trading at a premium (Forward PE: 72.7) compared to its historical average (52.7). At these levels, the market is pricing in 11.3% annual earnings growth.
Technical Outlook: Technically, DOCN is in a strong uptrend. The price is currently testing key support at $147.91. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 7.3% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $177.69 (+36.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DOCN is in a strong uptrend. The price is currently testing key support at $147.91. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 7.3% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $177.69 (+36.2%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$142.22 -
$175.63
Company Quality Score
53/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
78.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-7.3%)
- BULLISH: Trading 36.2% below Wall St target ($177.69)
- BULLISH: Expecting earnings turnaround to 11.3% growth with 22.4% revenue growth
Trading Range Analysis
30-Day Trading Range
$142.22 -
$175.63
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$147.91
Resistance Level
$184.46
Current Trend
Strong Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
72.73
Wall Street Target
$177.69
(+36.2%)
Revenue Growth (YoY)
22.4%
Earnings Growth (YoY)
-61.7%
Profit Margin
25.0%
Valuation Premium vs History
+11.3% premium
PE vs Historical
72.7 vs 52.7
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+11.3%
(market-implied from PE analysis)
1-Year Target
$145.24
(+11%)
2-Year Target
$161.65
(+24%)
3-Year Target
$179.91
(+38%)
3-Yr Target (if PE normalizes)
(PE: 73→53)
PE COMPRESSION
$130.36
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 72.7, Growth: 45.6%)
$402.49
(+208%)
Base:
(SPY PE: 21.8, Growth: 45.6%)
$120.53
(-8%)
Bear:
(PE: 18.5, Growth: 45.6%)
$102.45
(-22%)
📈
Valuation based on Current Earnings
Trailing PE: 61.77 | Current EPS (TTM): $2.28
Bull Case
$121.91
(-7%)
Analyst growth -21.3%, PE expands to 68.0
Base Case
$110.82
(-15%)
Market implied -21.3%, PE stable at 61.8
Bear Case
$95.77
(-27%)
Severe decline -20.0%, PE contracts to 52.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 13, 2026 6:11 AM ET
Data refreshes hourly during market hours. Next update: 7:11 AM
Data refreshes hourly during market hours. Next update: 7:11 AM
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Technical Signals Check
Is DOCN showing a specific setup today?
Insider Activity (6 Months)
0
Buys
2
Sells
Net
INSIDERS SELLING
Recent Transactions
Matt Steinfort
SELL
20000 shares
2026-03-03
Cherie Barrett
SELL
22000 shares
2026-03-02
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