DOCN Stock Analysis: Buy, Sell, or Hold?
DOCN - DigitalOcean Holdings, Inc.
$166.24
-7.03 (-4.06%)
▼
5d:
-2.46%
30d:
+3.83%
90d:
+101.14%
BUY
MODERATE Confidence
Analysis Updated: Jun 22, 2026 12:00 AM ET
Earnings: Aug 04, 2026
Smart Money Accumulation
None View Scanner →
Strength: 5.5/10
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DOCN shows positive signals but monitor for confirmation. Market pricing in 23.8% growth. Moderate conviction.
💡 BUY OPPORTUNITY: DOCN shows positive signals but monitor for confirmation. Market pricing in 23.8% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$85.55
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$53.12
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 $166.24, which is considered fair relative to its 30-day fair value range of $155.70 to $175.40. From a valuation perspective, the stock is trading at a premium (Forward PE: 94.6) compared to its historical average (49.9). At these levels, the market is pricing in 23.8% annual earnings growth.
Technical Outlook: Technically, DOCN is in a strong uptrend. Immediate support is located at $147.91, while resistance sits at $184.46. Short-term momentum is weak, with the stock down 4.1% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DOCN is in a strong uptrend. Immediate support is located at $147.91, while resistance sits at $184.46. Short-term momentum is weak, with the stock down 4.1% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$155.70 -
$175.40
Company Quality Score
53/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
66.2%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-4.1%)
- NEUTRAL: Near Wall St target ($178.77)
- BULLISH: Expecting earnings turnaround to 23.8% growth with 22.4% revenue growth
Trading Range Analysis
30-Day Trading Range
$155.70 -
$175.40
Current vs Trading Range
FAIR
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.)
94.61
Wall Street Target
$178.77
(+7.5%)
Revenue Growth (YoY)
22.4%
Earnings Growth (YoY)
-61.7%
Profit Margin
25.0%
Valuation Premium vs History
+23.8% premium
PE vs Historical
94.6 vs 49.9
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+23.8%
(market-implied from PE analysis)
1-Year Target
$205.81
(+24%)
2-Year Target
$254.79
(+53%)
3-Year Target
$315.43
(+90%)
3-Yr Target (if PE normalizes)
(PE: 95→50)
PE COMPRESSION
$166.37
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 94.6, Growth: 47.0%)
$527.63
(+217%)
Base:
(SPY PE: 21.8, Growth: 47.0%)
$121.47
(-27%)
Bear:
(PE: 18.5, Growth: 47.0%)
$103.25
(-38%)
📈
Valuation based on Current Earnings
Trailing PE: 75.66 | Current EPS (TTM): $2.29
Bull Case
$146.25
(-12%)
Analyst growth -23.3%, PE expands to 83.2
Base Case
$132.96
(-20%)
Market implied -23.3%, PE stable at 75.7
Bear Case
$117.82
(-29%)
Severe decline -20.0%, PE contracts to 64.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 23, 2026 2:20 AM ET
Data refreshes hourly during market hours. Next update: 3:20 AM
Data refreshes hourly during market hours. Next update: 3:20 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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Advanced DOCN Option Strategies
Professional options setups generated by AI based on today's DOCN price and gamma walls.
