Dropbox stock returns
Dropbox (DBX) stock has been listed on the stock exchange since March 23, 2018. Dropbox priced the IPO at $21 per share, and on the listing day, the stock closed 35.6% higher at $28.48. Dropbox has risen 11.6% to close at $31.78 on July 9.
Stock rose to $43.5 on June 18
Dropbox stock touched an all-time high of $43.50 on June 18. The stock has risen over 40% from $29.99 on May 31 to close at $42.00 on June 18. The stock rally was driven after Dropbox announced an improvement in its storage technology to enable expansion of applications.
Dropbox is looking to integrate its SMR (Shingled Magnetic Recording) drive technology with the Magic Pocket storage infrastructure platform. This move is aimed at increasing storage density, which would reduce a firm’s data center footprint and result in cost savings. Dropbox has claimed to be the first company to deploy SMR technology at this scale.
Dropbox beat earnings estimates by 60% in Q1 2018
Dropbox beat analyst earnings estimates of $0.05 by 60% with non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $0.08 in Q1 2018. Dropbox’s revenue rose 28% YoY (year-over-year) to $316.3 million with its paying user base rising to 11.5 million in Q1 2018, up from 9.3 million in Q1 2017.
Out of the 12 analysts covering Dropbox, seven have recommended a “buy,” four have recommended a “hold,” and one has recommended a “sell.” The average 12-month target price for Dropbox is $34.15, which indicates that the stock is trading at a discount of 7.5% to analyst estimates.