![]() ![]() Insider selling could add negative selling pressure. Since DBX stock is still newly listed, investors should watch for the lockup expiry post-IPO. Per Tipranks, the average price target on Dropbox stock is around $34, from the 12 analysts covering the stock. Canaccord Genuity set a $35 target, while Piper Jaffray is most bullish with a $40 price target. JPMorgan set a $32 price target on DBX stock. As another example, users may want to share files on Dropbox without sharing Google or Microsoft accounts. Similarly, a corporate user on Google may prefer to keep the Google Drive app on Android phones only.ĭropbox’s flexible app works well and easily on any platform, be it the desktop, Android or iPhone. This argument makes sense because an Office 365 subscriber may not necessarily want to use Microsoft’s OneDrive. JPMorgan’s Mark Murphy thinks Dropbox will work alongside the major players in the cloud storage services space. Still, the analysts make a few good points. Analysts Bullish on DBX StockĬiting analyst bullishness on DBX stock is hardly a compelling reason to believe there is more upside in the stock. As a pure play in the online storage space, the company may spend its advertising and support efforts to convert consumer accounts to paid business ones. With many online storage options, Dropbox appears to face enormous competitive pressures, but the company has an edge. Microsoft Corporation (NASDAQ: MSFT) offers OneDrive, which it advertises as letting users “Save your files and photos to OneDrive and get them from any device, anywhere.” Google Drive from Alphabet Inc (NASDAQ: GOOGL, NASDAQ: GOOG) offers “a safe place for all your files.” The big “if” for eventual revenue growth is if the company will convert its free-riding user base to business accounts through word of mouth.īusinesses have many online storage options. Every time a user invites friends to install and use the app, the company rewards the user with more storage.ĭropbox’s business model relies on a portion of these users convincing their bosses or IT department at work to sign up for the paid service. Once installed, the Dropbox storing app gives access to their files on any device. Twitter and Snap also rely on growing user activity to attract its advertisers, whereas Dropbox takes a different approach.ĭropbox has 500 million users. The big assumption is that the company converts a portion of its users to paying customers. This echoes that of the days of user activity and growth driving shares of Twitter Inc (NYSE: TWTR) or Snap Inc (NYSE: SNAP) higher.Īs a growth company, profits and revenue come second in importance for investors. Investors are enamored over Dropbox’s incredible rate of user growth. Are the analysts overly optimistic? Will the stock continue climbing higher? 17, glowing analyst coverage on the stock started, giving more reasons for the stock to go up. The stock is holding its gains since its IPO when it rose 40%.īy comparison, Box Inc (NYSE: BOX) fell 5% that day. ![]() (NASDAQ: DBX) looks like it could get bigger as its business continues to show strong momentum. At a valuation of $11.5 billion by market cap, Dropbox Inc. ![]()
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