DBX (Update)

Dropbox Inc

TMT


Presented:12/19/2019
Price:$18.16
Cap:$7.54B
Current Price:$26.27
Cap:$8.55B

Presented

Date12/19/2019
Price$18.16
Market Cap$7.54B
Ent Value$8.23B
P/E RatioN/A
Book Value$1.84
Div Yield0%
Shares O/S415.34M
Ave Daily Vol3,619,547
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.

Please note, this is an update to Dropbox Inc (DBX) – Long, which was first presented on 3/27/2019.

Publicly traded companies mentioned herein: Alphabet Inc (GOOG), Box Inc (BOX), DocuSign Inc (DOCU), Dropbox Inc (DBX), Microsoft Corp (MSFT)

Highlights

The presenter remains long shares of Dropbox Inc (DBX), noting that a disconnect still exists regarding the sustainability of ARPU and overall revenue growth. In his opinion, the Street incorrectly views DBX as a commodity despite ongoing performance that proves otherwise. Meanwhile, recent headlines have caused the stock to continue its downtrend (management shakeup) and then recover slightly (activist suggestion), but he believes these events could ultimately be positive for DBX’s long-term strategy. He reiterates the stock’s potential for upside to $75 – $80 per share and states that he is as bullish, if not more bullish, than he’s ever been on the company. 

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Idea Discussion

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