DOCN Stock Analysis: Buy, Sell, or Hold?
DOCN - DigitalOcean Holdings, Inc.
$55.25
-0.88 (-1.57%)
▼
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 24, 2026
23d
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11 traders called DOCN this week
94% bullish • 1 bearish
94% bullish • 1 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DOCN shows positive signals but monitor for confirmation. Market pricing in 4.5% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: DOCN shows positive signals but monitor for confirmation. Market pricing in 4.5% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$47.47
Based on -0.5% avg growth
INTRINSIC VALUE TODAY
$29.48
Trading above fair value
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 $55.25, which is considered slightly high relative to its 30-day fair value range of $49.36 to $56.12. From a valuation perspective, the stock is trading at a premium (Forward PE: 28.8) compared to its historical average (25.3). At these levels, the market is pricing in 4.5% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, DOCN is in a strong uptrend. Immediate support is located at $49.08, while resistance sits at $64.09.
Market Sentiment: DOCN has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. 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 $49.08, while resistance sits at $64.09.
Market Sentiment: DOCN has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Fair Price Range
$49.36 -
$56.12
Company Quality Score
62/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
72.4%
All Signals
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($56.17)
- NEUTRAL: Market pricing in 4.5% annual earnings growth - fairly valued
Fair Price Analysis
30-Day Fair Range
$49.36 -
$56.12
Current vs Fair Value
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$49.08
Resistance Level
$64.09
Current Trend
Strong Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
28.83
Wall Street Target
$56.17
(+0.1%)
Revenue Growth (YoY)
15.7%
Earnings Growth (YoY)
353.7%
Profit Margin
29.1%
Valuation Premium vs History
+4.5% premium
PE vs Historical
28.8 vs 25.3
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+4.5%
(market-implied from PE analysis)
1-Year Target
$58.66
(+5%)
2-Year Target
$61.30
(+9%)
3-Year Target
$64.05
(+14%)
3-Yr Target (if PE normalizes)
(PE: 29→25)
PE COMPRESSION
$56.22
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 28.8, Growth: -4.9%)
$48.34
(+-14%)
Base:
(SPY PE: 22.3, Growth: -4.9%)
$37.40
(-33%)
Bear:
(PE: 19.0, Growth: -4.9%)
$31.79
(-43%)
📈
Valuation based on Current Earnings
Trailing PE: 24.10 | Current EPS (TTM): $2.50
Bull Case
$51.61
(-7%)
Analyst growth -22.1%, PE expands to 26.5
Base Case
$46.92
(-15%)
Market implied -22.1%, PE stable at 24.1
Bear Case
$40.96
(-26%)
Severe decline -20.0%, PE contracts to 20.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 30, 2026 10:02 PM ET
Data refreshes hourly during market hours. Next update: 11:02 PM
Data refreshes hourly during market hours. Next update: 11:02 PM
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Technical Signals Check
Is DOCN showing a specific setup today?
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Bratin Saha
SELL
13010 shares
2025-09-03
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DOCN is a key holding in these high-performance investment strategies.
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Advanced DOCN Option Strategies
Professional options setups generated by AI based on today's DOCN price and gamma walls.
