DBX

Dropbox Inc

TMT


Presented:07/25/2018
Price:$31.31
Cap:$12.54B
Current Price:$26.27
Cap:$8.55B

Presented

Date07/25/2018
Price$31.31
Market Cap$12.54B
Ent Value$6.16B
P/E RatioN/A
Book Value$1.29
Div Yield0%
Shares O/S400.40M
Ave Daily Vol4,175,591
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 (GOOGL), Amazon.com Inc (AMZN), Apple Inc (AAPL), Box Inc (BOX), Dropbox Inc (DBX), Microsoft Corp (MSFT), Salesforce.com Inc (CRM)

Highlights

The presenter is short shares of Dropbox (DBX), seeing long-term structural issues with the company and short-term catalysts weighing on the stock. He believes DBX is a commoditized product that will have difficulty switching from its consumer-oriented model to an enterprise-facing one. Competitors already offer comparable products at meaningfully lower prices than DBX and there doesn’t seem to be an obvious way for the company to differentiate itself. Current valuation is inflated and predicated on unrealistic growth and FCF assumptions, in his opinion. Overall, there could be 40% downside for DBX shares.

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Idea Discussion

Commentor 1 - 2 weeks ago

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