DigitalOcean Holdings (XSWX:DOCN) Momentum Rank: 3 (As of Jul. 03, 2026)


XSWX:DOCN DigitalOcean Holdings Inc XSWX:DOCN
68 GF Score
Price CHF118.84
GF Value CHF41.87
! 6 Warning Signs
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What is DigitalOcean Holdings Momentum Rank?

DigitalOcean Holdings XSWX:DOCN 68 Momentum Rank is 3 as of Jul. 03, 2026. GuruFocus rates XSWX:DOCN with a GF Score™ of 68/100 and a GF Value™ of CHF41.87. The stock has 6 warning signs investors should review.

DigitalOcean Holdings has the Momentum Rank of 3.

Momentum Rank measures the strength and persistence of a stock's price movement over time, rated on a scale of 1 to 10.

For Momentum Rank, we considered the residual momentum concept that was widely studied by Blitz and his colleagues as well as by Nobel Prize laureates Fama and French. However, we did not find any significant differences in the performances of stocks with different ranks of residual momentum. Therefore, we use traditional momentum instead.

Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. The standardized momentum ratio is the average of the performances from 12 months ago to 1 month ago and 6 months ago to 1 month ago, divided by the beta of the stock over the past 12 months. To calculate the momentum ratio today, we would use the average of the two performance numbers.

For momentum, we found that stock price performance does not have a monotonic correlation with the momentum ratio. The stocks with the highest momentum ratios perform worse than those at about the 70th percentile. Therefore, for the momentum rank, we ranked the stocks at about the 70th percentile of the momentum ratio as the highest at 10.

A higher score reflects strong price momentum and indicates greater potential for superior performance. Conversely, a lower score indicates that momentum is either too high or too low, and stocks tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

DigitalOcean Holdings Momentum Rank Related Terms

XSWX:DOCN vs : Momentum Rank Comparison

For the Software - Infrastructure subindustry, DigitalOcean Holdings's Momentum Rank, along with its competitors' market caps and Momentum Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

DigitalOcean Holdings Momentum Rank vs Software Industry

For the Software industry and Technology sector, DigitalOcean Holdings's Momentum Rank distribution charts can be found below:

* The bar in red indicates where DigitalOcean Holdings's Momentum Rank falls into.


XSWX:DOCN
68GF Score
DigitalOcean Holdings Inc XSWX:DOCN
Momentum Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Momentum Rank →
What does a Momentum Rank of 3 mean?
DigitalOcean Holdings (XSWX:DOCN) has a Momentum Rank of 3 as of Jul. 03, 2026. Momentum Rank is determined using the standardized momentum ratio, measuring the speed and velocity of price changes in a stock. View historical data on DigitalOcean Holdings and its competitors.
Is DigitalOcean Holdings' Momentum Rank too high?
DigitalOcean Holdings' current Momentum Rank is 3. Overall, DigitalOcean Holdings has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does DigitalOcean Holdings' Momentum Rank compare to ?
DigitalOcean Holdings' Momentum Rank of 3 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Momentum Rank for a Software company?
A good Momentum Rank depends on the Software industry context. However, Momentum Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Momentum Rank mean?
A high Momentum Rank can signal that a stock is expensive relative to its fundamentals. Momentum Rank is determined using the standardized momentum ratio, measuring the speed and velocity of price changes in a stock. View historical data on DigitalOcean Holdings and its competitors. DigitalOcean Holdings's current Momentum Rank is 3. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DigitalOcean Holdings stock overvalued right now?
DigitalOcean Holdings (XSWX:DOCN) has a current Momentum Rank of 3. The stock's GF Value™ is CHF41.87, compared to a current price of CHF118.84 — trading 183.8% above its estimated fair value. The current Momentum Rank is 3. DigitalOcean Holdings' overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Momentum Rank calculated?
Momentum Rank is calculated from a company's financial statements. For DigitalOcean Holdings (XSWX:DOCN), the current Momentum Rank is 3 as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is DigitalOcean Holdings (XSWX:DOCN) Overvalued in 2026?

Based on GuruFocus' analysis, DigitalOcean Holdings stock appears to be overvalued. The current stock price of CHF118.84 is trading 183.8% above its estimated GF Value™ of CHF41.87.

Key valuation signals for XSWX:DOCN:

  • Momentum Rank: 3
  • GF Value™: CHF41.87 vs. price of CHF118.84 (183.8% above fair value)
  • GF Score™: 68/100 with 6 warning signs

No single metric tells the full story. See the XSWX:DOCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

DigitalOcean Holdings Business Description

Comparable Companies
Address 105 Edgeview Drive, Suite 425, Broomfield, CO, USA, 80021
DigitalOcean Holdings Inc is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses. The customers use the platform for a wide range of cases, such as web and mobile applications, website hosting, e-commerce, media and gaming, personal web projects, and managed services, among many others. Geographically, the company generates maximum revenue from North America and also has a presence in Europe, Asia, and the Rest of the world.
68GF Score

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Momentum Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF118.84
Price
CHF41.87
GF Value