AMZN vs DOCN: How Amazon and DigitalOcean Holdings Compare (2026)

Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: AMZN is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AMZN and DOCN share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AMZN and DOCN exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Amazon is one of the largest companies in the world, operating across three major business lines. Amazon Web Services (AWS) is the dominant global cloud computing provider, generating around $110 billion in annual revenue and most of the company's operating income. The North America and International e-commerce segments include the Amazon online marketplace, Prime membership, and third-party seller services. Advertising has grown into the third-largest digital ad business in the world (after Google and Meta).

Full AMZN guide

DigitalOcean is a cloud-computing platform built for developers, startups, and small and medium-sized businesses that want simpler, more affordable infrastructure than the large hyperscalers offer. The company provides virtual servers (called Droplets), managed databases, Kubernetes, object storage, and other building blocks through a clean interface and transparent, predictable pricing. Its core appeal is ease of use and cost clarity: rather than the sprawling, complex consoles of AWS, Azure, or Google Cloud, DigitalOcean targets smaller teams that value straightforward setup and a strong developer experience, supported by extensive documentation and tutorials. The company makes money on a consumption basis as customers run workloads, store data, and consume bandwidth, with revenue tracking customer usage and expansion. DigitalOcean has pushed into managed application hosting through its App Platform, expanded with the acquisition of managed-hosting provider Cloudways, and added AI and machine-learning infrastructure, including GPU access through its Paperspace acquisition, to serve developers building AI applications. It is headquartered in New York City.

Full DOCN guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• AMZN drivers: AWS as the AI infrastructure backbone; Retail margin expansion.
• DOCN drivers: Simplicity for SMBs and developers; AI and GPU infrastructure.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Hyperscaler AI capex is concentrated; if model training demand cools, AWS growth slows. For DOCN, digitalOcean competes against AWS, Microsoft Azure, and Google Cloud, which have vastly greater scale, resources, and product breadth and can bundle or discount aggressively.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AMZN if you believe its drivers more; DOCN if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AMZN and DOCN guides.

AMZN. Amazon's headline P/E reflects the aggregate of low-margin retail and high-margin AWS/advertising. The valuation premium is paid for AWS specifically; retail is essentially valued near cost. P/E of 40x is elevated versus the S&P 500 average (~22x), supported by AWS growth re-accelerating.

DOCN. DigitalOcean is valued as a smaller, profitable cloud-infrastructure growth company. Unlike many cloud peers, it generates positive adjusted earnings and free cash flow, so the market weighs both growth and profitability. The valuation hinges on whether it can reaccelerate growth, especially through AI and higher-value customers, while defending its niche against far larger hyperscalers.

Headline figures (approximate, early 2026): AMZN shows revenue (ttm) ~$650 billion, operating margin ~10% (AWS materially higher; retail much lower), net income (ttm) ~$60 billion, eps (ttm) ~$5.50; DOCN shows revenue (ttm) ~$0.8 billion, revenue growth Mid-teens percent, decelerated from earlier highs, adjusted ebitda margin ~40%, net revenue retention Around 100%, improving toward higher-value customers.

AMZN and DOCN are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AMZN and DOCN exposure against your real portfolio. It is not an investment adviser.