IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#829
Positioning
Market Dominance
Services
Computer Software
$3.1B
Yancey L. Spruill
DigitalOcean Holdings, Inc. operates a cloud computing platform in North America, Europe, Asia, and internationally. Its platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and medium size businesses. The company's customers use its platform in various industry verticals and for a range of use cases.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DOCN ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$DOCN DigitalOcean Holdings, Inc. | 59 | 37 | 67 | 85 | 21.8x | 49.8x | -267.3% | 15.4% | 59.9% | 16.5% | 30.2% | 19.3% | 0.0% | - | $3.1B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
DigitalOcean Holdings, Inc. (DOCN) receives a "Hold" rating with a composite score of 58.6/100. It ranks #829 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
Average quality profile
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DOCN.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 37 | 28 | +9ALPHA |
| MOMENTUM | 85 | 93 | -8DRAG |
| VALUATION | 67 | 75 | -8DRAG |
| INVESTMENT | 41 | 70 | -29DRAG |
| STABILITY | 38 | 33 | +5NEUTRAL |
| SHORT INT | 58 | 73 | -15DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 4.2% vs WACC 8.9% (spread -4.6%)
GM 60% vs sector 65%, OM 17% vs sector 5%
Capital turnover 0.22x, R&D intensity 17.8%
Rev growth 19%, 5yr history
Interest coverage N/A, Net debt/EBITDA 23.5x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate DigitalOcean Holdings, Inc. (DOCN) as a Hold with a composite score of 58.6/100 at a current price of $62.83. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
DigitalOcean Holdings, Inc. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 58.6/100 places it at rank #829 in our full universe.
The near-term outlook is constructive, with revenue growing at 19% and momentum in the 85th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
High
Poor
Undervalued
Gross margins of 60% signal strong pricing power.
Value factor score of 67 suggests attractive pricing.
Positive momentum indicates institutional accumulation.
Vulnerability to macroeconomic shocks and interest rate volatility.
DigitalOcean Holdings, Inc. represents a hold based on multi-factor quantitative performance.
Our model assigns DigitalOcean Holdings, Inc. a Hold rating, with a composite score of 58.6/100 and 3 out of 5 stars. Ranked #829 of 7,333 stocks, DOCN presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
DOCN's quality score of 37/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -267.3% (sector avg: 5.7%), gross margins of 59.9% (sector avg: 64.6%), net margins of 30.2% (sector avg: 2.8%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
DOCN's value score of 67/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 21.84x, an EV/EBITDA of 49.83x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 41/100, DOCN exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 19.3% vs. a sector average of 8.6% and a return on assets of 15.4% (sector: 2.4%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
DOCN shows strong momentum characteristics with a score of 85/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 19.3% year-over-year, while a beta of 2.02 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
DOCN's stability score of 38/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 2.02. Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 58/100 for DOCN suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 2.02). With a $3.1B market cap (mid-cap), DigitalOcean Holdings, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
DigitalOcean Holdings, Inc. is a mid-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #829 of 7,333 overall (89th percentile). Key comparisons include ROE of -267.3% trailing the 5.7% sector median and operating margins of 16.5% above the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While DOCN currently exhibits a HOLD profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
Key factor gap
Momentum (85) vs Quality (37) — closing this gap could shift the rating.
EV/EBITDA 325% ABOVE SECTOR MEDIAN
ROE 4757% BELOW SECTOR MEDIAN
Gross Margin 7% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Salesforce has discontinued development on Heroku, its platform-as-a-service offering, shifting to a sustaining engineering model with no new features. This creates an opportunity for DigitalOcean's App Platform to capture Heroku's customers seeking alternatives. DigitalOcean has already published migration guides and is offering incentives to convert users, positioning itself to benefit from accelerating revenue growth in 2026.
While Nebius Group offers impressive triple-digit revenue growth, it remains unprofitable with widening losses expected for years. DigitalOcean presents a safer alternative in the AI data center space—already profitable with a 99% net dollar retention rate, 640,000 customers, and consistent 15% year-over-year revenue growth. Trading near analyst targets at 25x forward earnings, DigitalOcean has beaten bottom-line estimates for 10 consecutive quarters.
CoreWeave (CRWV) surged 12.22% to $89.93 on January 12, 2026, following CEO Michael Intrator's podcast commentary addressing concerns about GPU lifespan. The cloud-based GPU infrastructure provider for AI workloads benefited from new analyst coverage and plans to integrate Nvidia's next-generation Rubin AI architecture. The broader market saw modest gains with the S&P 500 up 0.15% and Nasdaq up 0.26%, while cloud infrastructure peers also gained ground.
DigitalOcean (DOCN) Q4 2025 earnings call recap: AI-driven ARR surge, raised 2026 guidance, margin outlook, and risks—get the key takeaways now.
DigitalOcean Holdings Inc (DOCN) reports 18% revenue growth and a significant increase in AI customer ARR, while navigating competitive pressures and infrastructure investments.