DBX

Dropbox Inc

TMT


Presented:03/27/2019
Price:$21.42
Cap:$8.81B
Current Price:$26.27
Cap:$8.55B

Presented

Date03/27/2019
Price$21.42
Market Cap$8.81B
Ent Value$7.41B
P/E RatioN/A
Book Value$1.65
Div Yield0%
Shares O/S411.27M
Ave Daily Vol2,707,752
Short IntN/A

Current

Price$26.27
Market Cap$8.55B
Dropbox, Inc. is a collaboration platform that's transforming the way people and teams work together. It offers following products: Dropbox Basic, Plus, Professional and Business. The Dropbox Basic is the simple, powerful home for photos, videos, docs, and other files. Its users also get access to new product Dropbox Paper, a collaborative workspace that helps teams create and share early ideas, and work with any type of content, in one centralized place. The Dropbox Plus provides unrivalled sync along with 1 TB of space, powerful sharing features, and increased control. The Dropbox Professional allows independent workers to store, share, and track their work from one place. The Dropbox Business is designed for small to enterprise level businesses, which users get full visibility and control over how critical work files are accessed and shared while letting team members continue to use the products. Dropbox was founded by Andrew W. Houston and Arash Ferdowsi in June 2007 and is headquartered in San Francisco, CA.

Publicly traded companies mentioned herein: Alphabet Inc (GOOG), Amazon.com Inc (AMZN), Box Inc (BOX), DocuSign Inc (DOCU), Dropbox Inc (DBX), Microsoft Corp (MSFT), Twilio Inc (TWLO)

Highlights

The presenter is long shares of Dropbox Inc (DBX), the inventor of the “file sync and share” offering, due to its strategic positioning in the market. The bear thesis states that while DBX is/was innovative, Google Suite and Office 365 will eventually destroy the business. He disagrees, however, noting that DBX is “approaching things differently.” Unlike Google Suite and Office 365, DBX is focused on evolving to offer a workforce cloud. With shares currently trading below 5x revenue at ~$22, the presenter sees 40% – 50% upside to the low-$30 range through EOY and a price target of $75 – $80 (~10x revenue) over the next three years if the company looks to monetize more aggressively.

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Idea Discussion

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