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 173.67% per annum.
- DOCN price at the close of September 6, 2024 was $36.40 and was lower than the bottom border of the primary price channel by $15.15 (29.39%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 11.37% per annum.
- DOCN price at the close of September 6, 2024 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
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: April 9, 2024
a = 0.6750
b = 0.0028
s = 0.1067
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0028) – 1
= 173.67%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.1067) – 1
= 53.23%
August 25, 2023 calculations
Top border of price channel:
Exp(Y610)
= Exp(a + b × X610 + 2 × s)
= Exp(a + b × 884 + 2 × s)
= Exp(0.6750 + 0.0028 × 884 + 2 × 0.1067)
= Exp(3.3267)
= $27.85
Bottom border of price channel:
Exp(Y610)
= Exp(a + b × X610 – 2 × s)
= Exp(a + b × 884 – 2 × s)
= Exp(0.6750 + 0.0028 × 884 – 2 × 0.1067)
= Exp(2.8999)
= $18.17
April 9, 2024 calculations
Top border of price channel:
Exp(Y765)
= Exp(a + b × X765 + 2 × s)
= Exp(a + b × 1,112 + 2 × s)
= Exp(0.6750 + 0.0028 × 1,112 + 2 × 0.1067)
= Exp(3.9556)
= $52.23
Bottom border of price channel:
Exp(Y765)
= Exp(a + b × X765 – 2 × s)
= Exp(a + b × 1,112 – 2 × s)
= Exp(0.6750 + 0.0028 × 1,112 – 2 × 0.1067)
= Exp(3.5288)
= $34.08
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 173.67% per annum.
- DOCN price at the close of September 6, 2024 was $36.40 and was lower than the bottom border of the primary price channel by $15.15 (29.39%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: December 14, 2023
End date: September 6, 2024
a = 3.9477
b = -0.0003
s = 0.0704
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -11.37%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0704) – 1
= 32.50%
December 14, 2023 calculations
Top border of price channel:
Exp(Y687)
= Exp(a + b × X687 + 2 × s)
= Exp(a + b × 995 + 2 × s)
= Exp(3.9477 + -0.0003 × 995 + 2 × 0.0704)
= Exp(3.7595)
= $42.93
Bottom border of price channel:
Exp(Y687)
= Exp(a + b × X687 – 2 × s)
= Exp(a + b × 995 – 2 × s)
= Exp(3.9477 + -0.0003 × 995 – 2 × 0.0704)
= Exp(3.4781)
= $32.40
September 6, 2024 calculations
Top border of price channel:
Exp(Y869)
= Exp(a + b × X869 + 2 × s)
= Exp(a + b × 1,262 + 2 × s)
= Exp(3.9477 + -0.0003 × 1,262 + 2 × 0.0704)
= Exp(3.6713)
= $39.30
Bottom border of price channel:
Exp(Y869)
= Exp(a + b × X869 – 2 × s)
= Exp(a + b × 1,262 – 2 × s)
= Exp(3.9477 + -0.0003 × 1,262 – 2 × 0.0704)
= Exp(3.3899)
= $29.66
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 11.37% per annum.
- DOCN price at the close of September 6, 2024 was inside the secondary price channel.