With the stock's short interest still hovering around 10%, the recent news of Elliott Management's investment could subdue some of this pressure. Investors should look more closely at this name as we head into Q2 earnings as this could be a long-term secular cloud winner. However, using pretty conservative estimates and assuming the stock's forward P/E multiple remains consistent, there is a clear path towards a $40 stock over the next 12-18 months. The stock's revenue growth is good at around 10%, but it becomes a little more difficult to value based on a forward revenue multiple. Given the company's strong operating model and impressive margins, I continue to see upside to the stock even when looking at more traditional P/E valuation method. In a time where more companies are open to a work from home environment, having effective document storage and sharing capabilities is becoming a requirement to operate smoothly. In essence, they provide cloud-based storage for users, making it easier and more efficient for companies to store and share their documents. Despite the rocky start to their public life, I believe the solid fundamentals and attractive valuation will drive further upside to the company over time.ĭropbox allows users to store, share, and collaborate documents and has become a big benefactor of the global pandemic and shifting trends in work from home. Despite a few years of some turbulence after reaching a low point of under $17 in late 2019 the stock has eclipsed their opening price and is now trading above $30.
Funky-data/iStock Unreleased via Getty Imagesĭropbox ( NASDAQ: DBX) originally went public in March 2018 at a price of $21, though officially opened at $29.
0 kommentar(er)
