Schwab Network on $DOCN (Nov 9, 2026)

"Digital Ocean," we've talked about it together before. I know you've been a fan of hers for a long time. The stock is still up about 60% this year, but momentum has noticeably declined over the past month as we have seen this pressure on the technology sector. So how do you view "Digital Ocean" now?

Yes, I have been investing in Digital Ocean since the price was in the thirties, and since then, the market has not understood what this company is all about. They view it as a small-scale GPU lessee competing with companies like CoreWave .

While it is in fact a very profitable basic cloud platform , it has a huge AI business that enhances the entire platform.

I mean, just last week, the annual recurring revenue (ARR) for AI clients grew by 300% to $400 million . The company also added a record $160 million in annual recurring revenue in a single quarter.

The token sizes increased tenfold on a sequential basis.

So, the best figure in their latest earnings report for me is that 90% of their AI revenue actually comes from customers using the broader Digital Ocean platform rather than just using GPUs.

Therefore, the market views Digital Ocean with a narrow perspective, believing it to be just another technology infrastructure company. In fact, they are a cloud computing powerhouse perfectly suited to the massive artificial intelligence economy .

I believe that this decline we are witnessing now represents an opportunity because their business is thriving, but the stock has fallen by 50% due to the market's mischaracterization of them.

Shay highlights a strong underlying story, but I see a downward channel. Yes, but what I see is that we have retreated to an area that appears to have significant support. The reason I say that is because we have a previous high and a subsequent low roughly here, and that's where we appear to have bottomed out now near 71.

If we continue to fall, the 51 level also stands out because it was a floor that was repeated a few times there. But overall, as you say, Marley, from our previous peak near 187.50, we can draw this descending channel line.

We can draw a channel using our trend line. We can replicate it and place it across our bottoms here to give us this general pattern that covers most of our price activity . In the short term, we have a steeper, more sloping blue trend line here pointing downwards since before our last earnings event .

So, at the moment, if we consider the following moving averages, we are below the four levels that we usually follow here . The closest one is the 5-day exponential moving average in dark blue.

A little less than 79, this represents one week of trading activity. So, if we rise above this level here and break through our short-term trend line , the next potential target in terms of moving averages would be the 21-day exponential moving average, which represents one month, at 96.12.

The Relative Strength Index is below the 50 midline, but it has managed to break through the 30 threshold again, so it is no longer in the oversold zone. We also have a matching downward trend line.

Therefore, the bulls will want to see a breakout above both the RSI trendline and the price trendline almost simultaneously here. The trading volume profile shows that we have a significant node here, and our control point , which is the most intense trading area of ​​all, comes in at 87.50.

So, we are near the lower edge of that size knot here. Things are picking up again noticeably between 49 and 63. So, this is a notable support zone. Also note the number of trading spikes we have seen recently.

Therefore, there has been very heavy trading on this stock in recent days.

Well, we have an increase of approximately 6% during today's session so far. We are trading at a level of 76.71 for Digital Ocean.