By skyforbes Last week I introduced you guys to the P A T H, which was up 30% until the Trump Tariff Tape Bomb on Friday. I'm still holding a large January position there (see updates in post). Thesis intact!
But now, it be time to set sail on the DIGITAL OCEAN $DOCN as well!
I noticed a lot of you discussing “FuNdAmEnTaLs” and “PrIcE tO EaRnInGs RaTiOs.” Maybe some of you need to switch over to r/investing or r/dividends. Since when is this place full of a bunch of value investors? Anyways, here’s an AI play with fundamentals so strong that your mom, dad, grandma and grandpa can buy. Maybe they’ll love you if you can make them some money. I present: DOCN.
Below, check out the chart. Notice anything? Almost the exact same set up as P A T H, which took off explosively last week after breaking mult-year accumulation range. Here we have a smaller market cap, and much lower P/E at 31.
End of September it JUST completed a Golden Cross.
Trendline going back to August 2023 indicates a breakout here would be huge, and at a meager market cap of 3.6B, this can easily double from here through the end of the year. Once eyes are on this and it finally gets the attention it deserves, it’s going to absolutely fly in this frothy market that is salivating for any AI play it can sink its teeth into.
Now lets look at fUnDamENtalS
What the fuck does DOCN do? Digital Ocean is a cloud computing company that owns and operates the equipment to run data centers globally. That's right, THEY RUN DATA CENTERS. Oh, just the little old things that are required by every single AI developer and crypto miner to do… fucking everything. THINK MARK, THINK.
They’re selling SHOVELS IN A GOLD RUSH
Now, as if just being a data center isn’t enough to send a stock flying in this market… *cough cough\… APLD, GLXY, CRWV, NBIS, INOD… \cough cough* DOCN has something that few emerging AI/data/cloud companies bring to the table…EARNINGS. This company actually makes money. They have a 31 p/e and reported an adjusted EPS of $.92 on September 4, 2025.
DOCN IS ALSO A DIRECT VENDOR OF AMD CLOUD COMPUTING GPUS.
The numbers: Go ahead, take a look. Find me another data/AI company with a $3b market cap boasting numbers like this:
These guys are printing money for their size. They BIGLY beat earnings expectations eight times in a row. Last earnings they pumped 30%. For comparison, APLD has a market cap 3x larger with only ~60m in quarterly revenue. (thats like one third of the quarterly revenue DOCN makes.) Jensen Huangs speech last week emphasized the importance of data centers. And that’s not where the NVDA connection stops…
New Partnerships: ever heard of NVDA? Ever heard of AMD? Ever heard of openAI? Well… DOCN has deals with ALL THREE. The openAI deal is brand new as of October 2025. AS IF this company isn’t a powerhouse on its own… they stand to be a DIRECT BENEFICIARY to the AMD/openAI deal… You know, the one that caused AMD to pump almost 50% last week???
Why? I’ll repeat it again you dense motherfucker. DOCN IS A DIRECT VENDOR FOR AMD GPUS. NAMELY, THE MI300X CHIP. openAI is driving the implementation of AMD’s chips to supplement the heavy chip demand.
As i was preparing this, an additional AMD deal was announced with Oracle for deployment of 50,000 AMD cloud GPUs… data/cloud/ai is the place to be in this market.
Now of course this is WSB and who cares about fundamentals when the market runs on crushing those “not long” and exploiting gamma ramps, and this is where things start to get really spicy…
IV / TA
Let me be clear. This is a 31x p/e company with excellent cash flow. The thesis of this play is NOT a S I play, but a realization of value… That said, bears have painted themselves into a corner. DOCN went public in 2021 and pumped to an ATH of $133 within months… then, stock suffered a large drawdown in the 2021/2022 bear market but stabilized around 30 to 40, where it’s been sideways for three years despite growing their revenue and EPS.
Per fintel, the stock has 15.57% S I… That’s not all… check out the insane gamma ramp for the November option expiration.
This can gamma ramp in a hurry with a breakout over $40-45, and IV is still very very low, sitting around 80% across most contracts.
And because there’s no weekly options, market makers cannot easily hedge upwards momentum, so there’s absolutely nothing to stand in the way of this gamma ramp a month out if things pick up speed. Monthly options carry much greater gamma risk for market makers. You want in on this before it gets stacked with weeklies!
Analysts upgrades: turns out, I'm not the only idiot who has found this company…
- Canaccord raised their price target from 49 to 55 10/10/2025
- UBS raised price target to 40 from 32
- Market Edge rates it as “Long” (their maximum rating)
- LSEG rates this stock as “out-perform”
Position: Currently holding these calls post dating earnings.
40 x Jan '26 $55c
30x December '25 $55c
55x November $50c
TLDR; DOCN is SELLING SHOVELS IN A GOLD RUSH, they’re a cloud/data center company that makes a lot of fucking money. They have a 30x p/e, a $3.6b market cap, established partnerships with AMD, NVDA, and a brand new October 2025 deal with OPENAI. They also stand to be a direct beneficiary of the AMD/openAI, and AMD/ORCL deal. Other data centers such as APLD, GLXY, CRWV, NBIS, INOD have pumped to the moon, while DOCN has been sleeping despite the fact that it has incredibly strong numbers. The stock is breaking out of a 3 year consolidation. Previous ATH was 133.
PT $69+ (next volume shelf above)