Stock Price Trends

DigitalOcean Holdings Inc (DOCN)

DigitalOcean Holdings, Inc. operates a cloud computing platform that provides platform infrastructure and tools for developers, startups, and small and medium-sized businesses in North America, Europe, Asia, and internationally. The company is headquartered in New York, New York.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 44.80% per annum.
  • DOCN price at the close of November 19, 2024 was $38.02 and was inside the primary price channel.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 8.35% per annum.
  • DOCN price at the close of November 19, 2024 was inside the secondary price channel.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of DOCN price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: August 25, 2023
End date: November 19, 2024

a = 2.3848

b = 0.0010

s = 0.1300

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0010) – 1
= 44.80%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1300) – 1
= 68.17%

August 25, 2023 calculations

Top border of price channel:

Exp(Y610)
= Exp(a + b × X610 + 2 × s)
= Exp(a + b × 884 + 2 × s)
= Exp(2.3848 + 0.0010 × 884 + 2 × 0.1300)
= Exp(3.5413)
= $34.51

Bottom border of price channel:

Exp(Y610)
= Exp(a + b × X610 – 2 × s)
= Exp(a + b × 884 – 2 × s)
= Exp(2.3848 + 0.0010 × 884 – 2 × 0.1300)
= Exp(3.0215)
= $20.52

November 19, 2024 calculations

Top border of price channel:

Exp(Y921)
= Exp(a + b × X921 + 2 × s)
= Exp(a + b × 1,336 + 2 × s)
= Exp(2.3848 + 0.0010 × 1,336 + 2 × 0.1300)
= Exp(3.9997)
= $54.58

Bottom border of price channel:

Exp(Y921)
= Exp(a + b × X921 – 2 × s)
= Exp(a + b × 1,336 – 2 × s)
= Exp(2.3848 + 0.0010 × 1,336 – 2 × 0.1300)
= Exp(3.4799)
= $32.46

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 44.80% per annum.
  • DOCN price at the close of November 19, 2024 was $38.02 and was inside the primary price channel.

Secondary Trend

Start date: December 13, 2023
End date: November 19, 2024

a = 3.3456

b = 0.0002

s = 0.0854

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 8.35%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0854) – 1
= 40.75%

December 13, 2023 calculations

Top border of price channel:

Exp(Y686)
= Exp(a + b × X686 + 2 × s)
= Exp(a + b × 994 + 2 × s)
= Exp(3.3456 + 0.0002 × 994 + 2 × 0.0854)
= Exp(3.7347)
= $41.88

Bottom border of price channel:

Exp(Y686)
= Exp(a + b × X686 – 2 × s)
= Exp(a + b × 994 – 2 × s)
= Exp(3.3456 + 0.0002 × 994 – 2 × 0.0854)
= Exp(3.3930)
= $29.75

November 19, 2024 calculations

Top border of price channel:

Exp(Y921)
= Exp(a + b × X921 + 2 × s)
= Exp(a + b × 1,336 + 2 × s)
= Exp(3.3456 + 0.0002 × 1,336 + 2 × 0.0854)
= Exp(3.8098)
= $45.14

Bottom border of price channel:

Exp(Y921)
= Exp(a + b × X921 – 2 × s)
= Exp(a + b × 1,336 – 2 × s)
= Exp(3.3456 + 0.0002 × 1,336 – 2 × 0.0854)
= Exp(3.4681)
= $32.07

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 8.35% per annum.
  • DOCN price at the close of November 19, 2024 was inside the secondary price channel.