Digitalocean Holdings Stock Buy Hold or Sell Recommendation
| DOCN Stock | USD 36.13 0.86 2.44% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding DigitalOcean Holdings is 'Hold'. The recommendation algorithm takes into account all of DigitalOcean Holdings' available fundamental, technical, and predictive indicators you will find on this site.
Check out DigitalOcean Holdings Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide. In addition, we conduct extensive research on individual companies such as DigitalOcean and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards DigitalOcean Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
DigitalOcean |
Execute DigitalOcean Holdings Buy or Sell Advice
The DigitalOcean recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on DigitalOcean Holdings. Macroaxis does not own or have any residual interests in DigitalOcean Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute DigitalOcean Holdings' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
DigitalOcean Holdings Trading Alerts and Improvement Suggestions
| DigitalOcean Holdings generated a negative expected return over the last 90 days | |
| DigitalOcean Holdings has a strong financial position based on the latest SEC filings | |
| About 60.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: DigitalOcean Holdings Inc Trading 3.17 percent Higher on Jan 16 |
DigitalOcean Holdings Returns Distribution Density
The distribution of DigitalOcean Holdings' historical returns is an attempt to chart the uncertainty of DigitalOcean Holdings' future price movements. The chart of the probability distribution of DigitalOcean Holdings daily returns describes the distribution of returns around its average expected value. We use DigitalOcean Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of DigitalOcean Holdings returns is essential to provide solid investment advice for DigitalOcean Holdings.
| Mean Return | -0.25 | Value At Risk | -3.35 | Potential Upside | 3.57 | Standard Deviation | 2.87 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of DigitalOcean Holdings historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
DigitalOcean Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as DigitalOcean Holdings, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading DigitalOcean Holdings back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Van Berkom And Associates Inc | 2024-09-30 | 1.3 M | Jpmorgan Chase & Co | 2024-09-30 | 1.2 M | Arrowstreet Capital Limited Partnership | 2024-09-30 | 1.2 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1.1 M | Hood River Capital Management Llc | 2024-09-30 | 1 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 865.7 K | Goldman Sachs Group Inc | 2024-09-30 | 726.4 K | Bank Of New York Mellon Corp | 2024-09-30 | 661.6 K | Northern Trust Corp | 2024-09-30 | 632.6 K | Blackrock Inc | 2024-09-30 | 9.9 M | Vanguard Group Inc | 2024-09-30 | 8.3 M |
DigitalOcean Holdings Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Investments | (115.5M) | (113.6M) | (718.3M) | 301.8M | 271.6M | 285.2M | |
| Change In Cash | 66.7M | 1.6B | (1.6B) | 167.2M | 150.5M | 158.0M | |
| Net Borrowings | 44.0M | 65.0M | 1.2B | (1.5M) | (1.7M) | (1.7M) | |
| Free Cash Flow | (57.5M) | 24.0M | 74.9M | 110.1M | 126.6M | 133.0M | |
| Depreciation | 75.6M | 88.4M | 102.2M | 117.9M | 135.5M | 91.6M | |
| Other Non Cash Items | 26.2M | 1.5M | 29.9M | 32.6M | 37.5M | 21.0M | |
| Capital Expenditures | 115.7M | 109.1M | 120.2M | 124.8M | 143.5M | 112.8M | |
| Net Income | (43.6M) | (19.5M) | (24.3M) | 19.4M | 22.3M | 23.4M | |
| End Period Cash Flow | 102.5M | 1.7B | 151.8M | 319.0M | 366.8M | 432.3M | |
| Change To Netincome | 30.5M | 55.7M | 72.2M | 128.1M | 147.3M | 154.7M |
DigitalOcean Holdings Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to DigitalOcean Holdings or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that DigitalOcean Holdings' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a DigitalOcean stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.27 | |
β | Beta against Dow Jones | 0.19 | |
σ | Overall volatility | 2.98 | |
Ir | Information ratio | -0.1 |
DigitalOcean Holdings Volatility Alert
DigitalOcean Holdings exhibits very low volatility with skewness of -1.22 and kurtosis of 7.13. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DigitalOcean Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact DigitalOcean Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.DigitalOcean Holdings Fundamentals Vs Peers
Comparing DigitalOcean Holdings' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze DigitalOcean Holdings' direct or indirect competition across all of the common fundamentals between DigitalOcean Holdings and the related equities. This way, we can detect undervalued stocks with similar characteristics as DigitalOcean Holdings or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of DigitalOcean Holdings' fundamental indicators could also be used in its relative valuation, which is a method of valuing DigitalOcean Holdings by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare DigitalOcean Holdings to competition |
| Fundamentals | DigitalOcean Holdings | Peer Average |
| Return On Equity | -0.39 | -0.31 |
| Return On Asset | 0.0438 | -0.14 |
| Profit Margin | 0.11 % | (1.27) % |
| Operating Margin | 0.12 % | (5.51) % |
| Current Valuation | 4.52 B | 16.62 B |
| Shares Outstanding | 92.28 M | 571.82 M |
| Shares Owned By Insiders | 32.22 % | 10.09 % |
| Shares Owned By Institutions | 60.30 % | 39.21 % |
| Number Of Shares Shorted | 5.75 M | 4.71 M |
| Price To Book | 67.92 X | 9.51 X |
| Price To Sales | 4.41 X | 11.42 X |
| Revenue | 692.88 M | 9.43 B |
| Gross Profit | 455.33 M | 27.38 B |
| EBITDA | 153.59 M | 3.9 B |
| Net Income | 19.41 M | 570.98 M |
| Cash And Equivalents | 1.17 B | 2.7 B |
| Cash Per Share | 12.03 X | 5.01 X |
| Total Debt | 1.66 B | 5.32 B |
| Current Ratio | 16.59 X | 2.16 X |
| Book Value Per Share | (2.29) X | 1.93 K |
| Cash Flow From Operations | 234.94 M | 971.22 M |
| Short Ratio | 7.97 X | 4.00 X |
| Earnings Per Share | 0.86 X | 3.12 X |
| Price To Earnings To Growth | 1.87 X | 4.89 X |
| Target Price | 40.82 | |
| Number Of Employees | 1.16 K | 18.84 K |
| Beta | 1.83 | -0.15 |
| Market Capitalization | 3.33 B | 19.03 B |
| Total Asset | 1.46 B | 29.47 B |
| Retained Earnings | (344.24 M) | 9.33 B |
| Working Capital | 310.35 M | 1.48 B |
| Net Asset | 1.46 B |
Note: Acquisition by Hilary Schneider of 353 shares of DigitalOcean Holdings at 35.41 subject to Rule 16b-3 [view details]
DigitalOcean Holdings Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as DigitalOcean . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About DigitalOcean Holdings Buy or Sell Advice
When is the right time to buy or sell DigitalOcean Holdings? Buying financial instruments such as DigitalOcean Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out DigitalOcean Holdings Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DigitalOcean Holdings. If investors know DigitalOcean will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DigitalOcean Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.65 | Earnings Share 0.86 | Revenue Per Share | Quarterly Revenue Growth 0.121 | Return On Assets |
The market value of DigitalOcean Holdings is measured differently than its book value, which is the value of DigitalOcean that is recorded on the company's balance sheet. Investors also form their own opinion of DigitalOcean Holdings' value that differs from its market value or its book value, called intrinsic value, which is DigitalOcean Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DigitalOcean Holdings' market value can be influenced by many factors that don't directly affect DigitalOcean Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DigitalOcean Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if DigitalOcean Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DigitalOcean Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.