DBX Stock Soars 1.14% as Goldman Lifts Price Estimate, Who Else is Bullish?
June 20, 2023
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Dropbox ($NASDAQ:DBX) Inc. NASDAQ: DBX had a small but significant jump in its stock price today after Goldman Sachs increased their price estimate for the company. The stock rose by 1.14 percent to $0.28, prompting investors to consider who else is bullish on Dropbox Inc. Dropbox is a provider of cloud-based storage and collaboration solutions for businesses and individuals. It offers file synchronization, storage, file sharing and collaboration tools, allowing customers to store and share files online and across devices. Analysts are positive on Dropbox’s potential and have noted that the company has been experiencing strong user growth.
In addition, its recent acquisition of HelloSign could open up new sources of revenue for the company. The main catalyst behind Goldman’s bullish stance is the company’s focus on cloud and collaboration solutions for businesses, which is expected to drive revenue growth in the future. In addition, its industry-leading user base and brand recognition give it a competitive advantage that could help it further increase market share. Overall, analysts are optimistic about Dropbox’s future prospects and view the stock as a good long-term investment. Despite today’s small but significant rise in its stock price, the company still has room to grow and could continue to experience increases as more investors become aware of Dropbox’s potential.
Analysis
At GoodWhale, we have conducted an analysis of DROPBOX. According to our Star Chart, DROPBOX is classified as a “gorilla” – a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. Investors who are interested in such companies would be wise to consider DROPBOX. Our analysis also indicates that DROPBOX has a high health score of 8/10, due to its ability to generate cashflows and pay off debt. This means that the company is capable of funding future operations. Furthermore, our analysis shows that DROPBOX is strong in both growth and profitability, though comparatively weaker in terms of assets and dividend. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dropbox. More…
| Total Revenues | Net Income | Net Margin |
| 2.37k | 542.5 | 27.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dropbox. More…
| Operations | Investing | Financing |
| 795.8 | 51.3 | -954.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dropbox. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.99k | 3.36k | -1.03 |
Key Ratios Snapshot
Some of the financial key ratios for Dropbox are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.1% | – | 14.8% |
| FCF Margin | ROE | ROA |
| 32.4% | -65.1% | 7.3% |
Peers
In the cloud storage industry, there is intense competition between Dropbox Inc and its competitors Sovereign Cloud Holdings Ltd, Ucloud Technology Co Ltd, and Box Inc. All four companies are vying for a larger share of the market, and each has its own unique features and offerings.
– Sovereign Cloud Holdings Ltd ($ASX:SOV)
Sovereign Cloud Holdings Ltd is a publicly traded company with a market capitalization of $27.15 million as of 2022. The company has a negative return on equity of -23.6%. Sovereign Cloud Holdings Ltd is engaged in the business of providing cloud-based solutions and services to enterprises worldwide. The company offers a range of cloud-based solutions, including infrastructure as a service, platform as a service, and software as a service. Sovereign Cloud Holdings Ltd is headquartered in Hong Kong.
– Ucloud Technology Co Ltd ($SHSE:688158)
As of 2022, Ucloud Technology Co Ltd has a market cap of 5.72B and a Return on Equity of -11.13%. The company provides cloud computing and data center services to businesses and government organizations in China.
– Box Inc ($NYSE:BOX)
Box Inc is a cloud content management and file sharing service for businesses. The company has a market cap of 3.91B as of 2022 and a ROE of 10.86%. Box Inc enables users to access and share their content from anywhere, on any device. The company offers a variety of features to its users, including: file sharing, collaboration, security, and storage.
Summary
Investment analysts have been bullish on Dropbox Inc. (NASDAQ: DBX), as evidenced by Goldman Sachs’ recent price target lift. The stock price rose 1.14% to $0.28 on this news. Analysts generally view the cloud storage and collaboration software company as a strong buy due to its growth potential and user base, and its stock market performance has been positive year-to-date.
Dropbox also has an impressive Enterprise Mobility and Security offering and is looking to expand its cloud-based services and content offerings in the future. Overall, Dropbox Inc. is viewed by analysts as a promising investment opportunity with potential for further growth.
