Dropbox IPO, Big News for the Large Personal Cloud Platform
An IPO in the tech industry is a big deal for most companies. Dropbox is no exception and has been listed on the New York Stock Exchange’s NASDAQ index since March of 2018. Dropbox has had mixed success while being a publicly traded company. It has faced competition from many other companies and platforms that aim to do similar things to Dropbox at either a lower price or with no restrictions. The future of Dropbox is uncertain, however in this article we’ll talking about the Dropbox IPO and issues that it has faced since.
What is Dropbox?
Dropbox is a personal cloud storage solution. This means that Dropbox gives you the ability to store personal files on one of Dropbox’s many secure servers in the cloud and access it from any device that is able to connect to Dropbox including Mac OS and windows machines and apple and Android devices. Dropbox was founded in 2007 and at the time was one of the only platforms that was providing cloud storage. Following many successful years since then Dropbox had its IPO in 2018.
Dropbox IPO Competition with Apple and Google
Dropbox is a groundbreaking company. What it created in 2007 was incredible and an influence to larger companies such as Google and Apple to get interested in their own personal cloud platforms. Apple has since launched iCloud which is aimed at backing up all your photos, videos, and files on Apple devices including iPhone, iPad, and iMac. iCloud has seen a huge user base simply due to the fact that it is the only platform that is able to deal with Apple devices readily. Google Drive is Google’s personal cloud storage solution. Google Drive is well known for being one of the first platforms to launch concurrent document editing so you can modify documents with the other authors simultaneously while also storing those files in the cloud.
Drive has seen a huge user base due to the fact that each Google account comes with its own personal drive. Dropbox has many restrictions on how much data a user can store for free and for its paid account plan. Meanwhile, Google Drive has very generous restrictions and you will likely only require a paid account if you are storing terabytes of data. The competition from these two large companies in two things that Dropbox is unable to do, backing up Apple devices and offering large storage space, could be its downfall.
Dropbox Performance Since IPO
Dropbox saw a huge spike in its first day going public on the New York Stock exchange. In just a single day it rose 42%. However, all good things must come to an end, and with Dropbox this was certainly not the exception. Since Dropbox’s IPO, the company has seen its stock steadily decrease from $31 to $20 since March of 2018. There are many different factors to look at with this stock. The fact that it is overvalued, showing bearish chart patterns, and has been steadily decreasing since IPO shows that this stock is likely not the best place to be putting your money. Dropbox remains a great tool and will likely be around to serve as one of the largest personal cloud storage solutions for a long time, however, as with many tech stocks it may not have been prepared for the stock market.
Should I Invest in Dropbox?
The simple answer is no. Quite frankly, Dropbox has never been a profitable company. It will stick around for a long time, but it is unlikely that this company will suddenly begin making money unless it does something truly groundbreaking. Investing in this stock short-term and long-term is ill advised, however, investing from six weeks to nine months could have a small gain, but you’re likely better off sticking your money in an S&P 500 index fund.
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