NAS10029,644+0.67%S&P7,651+0.17%GOLD$4,416+0.37%BTC$81,118+6.17%VIX14.81−4.08%live tape · as of 13:00 UTC
The Screen · Technology · Software - Infrastructure
DigitalOcean Holdings Inc
DOCN · the NYSE · USD · Market cap $15.6B · 1,462 employees
DigitalOcean Holdings, Inc., through its subsidiaries, operates an agentic inference cloud platform in North America, Europe, Asia, and internationally.
FAIL · Does not pass the screen
132.98 USD
At the last full screen 2026-09-17
Screened 2026-09-17 · the tape above runs as of 13:00 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its markup label.
DigitalOcean Holdings Inc holds its Markup at $132.98. Consolidating, no directional conviction, held for 37 days.
As held on the ledger · 2026-09-17
Phase
Markup
Quantitative state
Consolidating, no directional conviction, held for 37 days
Price at the screen
$132.98
Valuation
60.45 trailing · 72.21 forward price to earnings
Values screen
FAIL· score 70.0
Beta
1.57
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
87.18%
Below 33%
Interest-bearing debt is 87.2% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
18.79%
Below 49%
Money owed to the company is 18.8% of assets, under the 49% limit.
Pass
Revenue purity
2.16%
Below 5%
Only 2.2% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-09-17 screen. The gold marker is the market price at the same screen. The price runs 16.2% above the base estimate.
Third-party analyst targets: 15 covering, consensus Buy. The average target sits +32% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-17 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
DigitalOcean's AI Cloud Carries a Steep Tag
Picture a specialist cloud outfit helping smaller teams spin up AI tools without wrestling the giants. DigitalOcean has carved a niche serving digital native firms that need straightforward infrastructure for intelligent apps. Yet the shares sit well above our fair value with a negative margin of safety, so we pass.
Revenue is expanding at 22 percent and the firm posts a 25 percent profit margin alongside 70 percent return on equity. These are solid figures on a narrow moat business. The forward multiple of 66 times earnings leaves little room for error and explains the none rating despite an ethical pass.
Competition from larger providers could squeeze growth while any slowdown in AI spending would hit margins fast. Currency moves and customer concentration add further pressure in a market that already prices perfection. Analysis, not advice.
The risks · The things to watch: it already moves more than the market on an average day; it carries a real debt load, which raises the stakes if revenue slips.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
DOCN trades on the NYSE. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 11.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 172% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 481%. Our forward projection puts the odds of a 10% gain over the next month near 45%. The street (13 analysts) rates it buy, with a mean price target of $179.
2026-07-26Markup$118.91-30.2%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 30.2% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 172% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 481%. Our forward projection puts the odds of a 10% gain over the next month near 45%. The street (13 analysts) rates it buy, with a mean price target of $179.
2026-07-18Markup$170.44+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B. Technically it is holding around 172% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 481%. Our forward projection puts the odds of a 10% gain over the next month near 45%. The street (13 analysts) rates it buy, with a mean price target of $179.
2026-07-03Markup$170.44+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Markup$170.44Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
