DOCN Stock Analysis: Buy, Sell, or Hold?
DOCN - DigitalOcean Holdings, Inc.
$117.50
-2.73 (-2.27%)
▼
5d:
-4.89%
30d:
-18.73%
90d:
+21.85%
BUY
MODERATE Confidence
Analysis Updated: Jul 31, 2026 12:00 AM ET
Earnings: Aug 04, 2026
1d
Smart Money Accumulation
None View Scanner →
Strength: 6.2/10
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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 5.1% growth. Moderate conviction.
💡 BUY OPPORTUNITY: DOCN shows positive signals but monitor for confirmation. Market pricing in 5.1% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$90.96
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$56.48
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 $117.50, which is considered oversold relative to its 30-day fair value range of $118.37 to $147.40. From a valuation perspective, the stock is trading at a premium (Forward PE: 62.9) compared to its historical average (54.1). At these levels, the market is pricing in 5.1% annual earnings growth.
Technical Outlook: Technically, DOCN is in a strong uptrend. Immediate support is located at $106.28, while resistance sits at $144.52.
Market Sentiment: DOCN has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $176.86 (+50.5%). 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 $106.28, while resistance sits at $144.52.
Market Sentiment: DOCN has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $176.86 (+50.5%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$118.37 -
$147.40
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 50.5% below Wall St target ($176.86)
- BULLISH: Expecting earnings turnaround to 5.1% growth with 22.4% revenue growth
Trading Range Analysis
30-Day Trading Range
$118.37 -
$147.40
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$106.28
Resistance Level
$144.52
Current Trend
Strong Uptrend
Technical data as of
Jul 31, 2026
Fundamental Context
Forward P/E (Next Year Est.)
62.89
Wall Street Target
$176.86
(+50.5%)
Revenue Growth (YoY)
22.4%
Earnings Growth (YoY)
-61.7%
Profit Margin
25.0%
Valuation Premium vs History
+5.1% premium
PE vs Historical
62.9 vs 54.1
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+5.1%
(market-implied from PE analysis)
1-Year Target
$123.49
(+5%)
2-Year Target
$129.79
(+11%)
3-Year Target
$136.41
(+16%)
3-Yr Target (if PE normalizes)
(PE: 63→54)
PE COMPRESSION
$117.35
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 62.9, Growth: 50.9%)
$396.56
(+238%)
Base:
(SPY PE: 20.7, Growth: 50.9%)
$130.72
(+11%)
Bear:
(PE: 17.6, Growth: 50.9%)
$111.11
(-5%)
📈
Valuation based on Current Earnings
Trailing PE: 46.78 | Current EPS (TTM): $2.57
Bull Case
$96.15
(-18%)
Analyst growth -27.3%, PE expands to 51.5
Base Case
$87.41
(-26%)
Market implied -27.3%, PE stable at 46.8
Bear Case
$81.76
(-30%)
Severe decline -20.0%, PE contracts to 39.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: August 02, 2026 8:39 AM ET
Data refreshes hourly during market hours. Next update: 9:39 AM
Data refreshes hourly during market hours. Next update: 9:39 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.
