Should I Buy DOCN? DOCN 2026 Analysis

Should You Buy DigitalOcean Holdings Inc (DOCN) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

62.920

1 Day change

9.12%

52 Week Range

64.090

Analysis Updated At

2026/02/04

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Buy now (impatient entry): DOCN is in a broader uptrend (bullish moving-average stack) and today’s sharp pullback (-6.21%) brings price closer to a defined support zone, improving risk/reward for an immediate entry.
Options sentiment is decisively bullish: very low put/call ratios with elevated activity suggest dip-buying/positive positioning.
Fundamentals/Street narrative support upside: recent quarter showed solid revenue growth and strong profitability, and analyst price targets have been trending higher (notably BofA to $72).
Intellectia Proprietary Trading Signals:
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.

Technical Analysis

Trend: Medium/long-term trend remains bullish (SMA_5 > SMA_20 > SMA_200), but price action today indicates a short-term pullback within that uptrend.
Momentum: MACD histogram is negative (-0.0895) and negatively expanding, confirming downside momentum in the near term.
RSI: RSI_6 = 42.4 (neutral-to-weak), not oversold yet—suggests downside pressure can persist but is not extreme.
Key levels: Current ~54.8 is below pivot 57.6 (near-term bearish). First support S1 ~52.83 (important “line in the sand” for buyers); next support S2 ~49.89. Resistances: R1 ~62.38, R2 ~65.33.
Pattern-based odds (provided): modeled 70% chance of modest upside next day (+1.42%) and stronger next week (+6.2%), consistent with a dip-then-rebound setup.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Put/Call OI ratio 0.44 and Put/Call volume ratio 0.10 indicate a strong call skew (bullish sentiment).
Activity: Today’s options volume is elevated vs recent baseline (today vs avg 30-day volume 14.64x), signaling heightened interest.
Volatility: IV_30d 89.13 with IV percentile 96.02 = options pricing implies large expected moves; sentiment is bullish, but options are expensive.
Structure: Calls open interest (48,781) exceeds puts (21,296), reinforcing upside bias.

Technical Summary

Sell

Buy

Positive Catalysts

- AI/agentic narrative tailwind: Street commentary highlights traction of agentic AI assistants in developer communities and DOCN’s positioning for always-on compute with predictable unit economics.
- Execution signals from prior commentary: references to big-deal momentum and prior record net-new ARR (per analyst notes) support a continuation narrative.
- Earnings catalyst ahead: QDEC 2025 earnings on 2026-02-24 (pre-market) can re-rate the stock if growth/ARR commentary stays strong.
- Analyst support: multiple Buy/Outperform ratings with raised targets provide institutional sponsorship on dips.

Neutral/Negative Catalysts

- Near-term technical weakness: downside momentum (negative, expanding MACD histogram) increases odds of a retest toward $52.8 support before a sustained bounce.
- Expectation risk: at least one key neutral view (Piper) highlights limited visibility and “little room for error,” implying the market may punish any guidance slippage.
- No fresh news this week: absence of new positive catalysts means price may be driven more by technicals/positioning until earnings.
- Flows/trading trends: hedge funds and insiders are described as Neutral (no strong confirming accumulation signal).

Financial Performance

Latest quarter (2025/Q3):
- Revenue $229.6M, +15.69% YoY (solid growth for the model).
- Net income $158.4M, +380.65% YoY (very strong improvement).
- EPS $1.50, +368.75% YoY.
- Gross margin 59.63%, +1.53% YoY (margin expansion supports operating leverage story).
Overall read: growth is healthy and profitability/margins are improving, aligning with the bullish analyst re-rating trend.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Trend (recent): Analyst tone has improved materially since Nov 2025 with multiple price-target raises and upgrades.
Most bullish recent note: BofA (2026-01-27) reiterated Buy and raised PT to $72 (from $60) citing agentic AI adoption and DOCN’s positioning.
Other supportive calls: Goldman kept Buy (PT to $50), Canaccord kept Buy (PT to $60), Oppenheimer initiated Outperform (PT $60).
Key cautious view: Piper kept Neutral and raised PT to $50, arguing limited visibility and high expectations.
Wall Street pros: AI/agentic tailwind, improving traction/momentum, expanding utilization for AI inferencing, improving growth outlook.
Wall Street cons: visibility/forecast risk and high bar for continued ARR/revenue execution.
Politicians/Congress: No recent congress trading data available; no politician/influential-figure transaction data provided.

12 Analyst Rating

Wall Street analysts forecast DOCN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOCN is 55.9 USD with a low forecast of 47 USD and a high forecast of 65 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

8 Buy

4 Hold

0 Sell

Moderate Buy

Current: 57.660

Low

Averages

55.9

High

Current: 57.660

Low

Averages

55.9

High

Cantor Fitzgerald

Thomas Blakey

Neutral -> Overweight

upgrade

$47 -> $68

AI Analysis

2026-02-05

New

Reason

Cantor Fitzgerald

Thomas Blakey

Price Target

$47 -> $68

AI Analysis

2026-02-05

New

upgrade

Neutral -> Overweight

Reason

Cantor Fitzgerald analyst Thomas Blakey upgraded DigitalOcean to Overweight from Neutral with a price target of $68, up from $47. The firm says the company's DigitalOcean's digital native-focused and developer-first approach to providing hyperscale services to the mass market is well positioned to scale up-market. This will drive profitable growth and a re-rating of the shares, the analyst tells investors in a research note. Cantor expects "continued scaling" of DigitalOcean's business, including large customer wins.

BofA

Wamsi Mohan

Buy

maintain

$60 -> $72

2026-01-27

Reason

BofA

Wamsi Mohan

Price Target

$60 -> $72

2026-01-27

maintain

Buy

Reason

BofA analyst Wamsi Mohan raised the firm's price target on DigitalOcean to $72 from $60 and keeps a Buy rating on the shares. The firm, which notes that shares are trading higher as agentic AI assistants, specifically Clawdbot, gain traction across developer communities, is raising its multiple to reflect the early innings of agentic AI adoption and use-cases from agentic AI broadening. DigitalOcean is well positioned to capitalize on early-stage AI agent deployments as developers typically prioritize an always-on server with predictable unit economics, the analyst tells investors.

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DOCN Should I Buy

DOCN Should I Buy

Should You Buy DigitalOcean Holdings Inc (DOCN) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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