![]() The Goldman Sachs Group reduced their price target on shares of Dropbox from $25.00 to $22.00 and set a sell rating for the company in a research report on Monday, November 7th. Royal Bank of Canada upped their price target on shares of Dropbox from $27.00 to $30.00 in a research report on Friday. Several other analysts also recently commented on the stock. The firm currently has an overweight rating on the stock. Though Dropbox may have fallen short of its last fund-raising valuation in the initial offering process thus far, some in Silicon Valley said the company’s future looked bright.Dropbox ( NASDAQ:DBX – Get Rating) had its price objective trimmed by Ke圜orp from $30.00 to $29.00 in a research report report published on Friday morning, Benzinga reports. Though the company continues to lose money, it has reduced the red ink on its books, losing $111.7 million last year. “When you’ve really honed your focus and how to differentiate yourself, you can do well,” Aaron Levie, Box’s chief executive, said in an interview.ĭropbox’s business has grown rapidly over the past three years, reaching $1.1 billion in sales last year. ![]() Though analysts have long worried about the prospects of independent file-storage providers like Dropbox and Box, a competitor that went public three years ago, the companies have shown that they can survive. Drew Houston and Arash Ferdowsi, two students at the Massachusetts Institute of Technology, created Dropbox as a workaround for not having USB flash drives handy, and the company has become one of the giants in the business of sharing files online. Going public would be the biggest accomplishment yet for Dropbox since it was founded in 2007. As the company’s executives and their advisers begin to crisscross the country in a series of meetings, their goal is to convince would-be buyers that its stock will perform more like Facebook’s, which has risen enormously in recent years, and less like Snap’s, whose stock is down 34 percent since its debut last year.ĭropbox is likely to begin trading on the Nasdaq stock market - under the ticker symbol DBX - by the end of next week. ![]() Monday’s filing preceded Dropbox’s road show to pitch its offering to potential investors. The market for initial offerings this year is already proving robust, with 29 so far, up 61 percent from a year ago, according to the advisory firm Renaissance Capital. Dropbox and Spotify, the music-streaming giant, which is planning its own listing, could presage a series that eventually includes the likes of Uber and Airbnb. Many investors are nonetheless expected to flock to Dropbox, in a year that is likely to be busy for stock market debuts. A spokeswoman for Dropbox declined to comment. That group includes the meal kit delivery service Hello Fresh and the database software provider MongoDB, according to the research firm CB Insights.ĭropbox could still hit that $10 billion valuation over time, assuming its stock price rises after it goes public. His firm does not have ties to the company.ĭropbox appears set to join a relatively small group of “down round” initial public offerings, in which a firm’s value is lower than it was when the firm raised money privately. “It’s a high-quality asset that was overpriced,” Venky Ganesan, a venture capitalist at Menlo Ventures, said of Dropbox. Many learned that stretching for every last dollar of valuation could make it more difficult to raise additional capital in the future, or to attract and keep employees with stock grants. Since then, companies have been more reserved. The lower potential valuation suggests that public market investors don’t share nearly the same enthusiasm for technology companies that venture capitalists once did, raising questions for a horde of other high-priced start-ups that are edging their way toward the public markets.ĭropbox attained its $10 billion valuation as a privately held company more than four years ago, in a different age for Silicon Valley, when many start-ups raced to collect as high a valuation as they could. At the midpoint of that range, Dropbox would be valued at roughly $7.5 billion, including restricted stock units and options - well below the $10 billion it commanded during its last private fund-raising round. The San Francisco company said Monday that it planned to raise as much as $648 million in its initial public offering, pricing its shares between $16 and $18 each. But whether investors think the technology darling is more valuable as a publicly traded company or as a privately held start-up is debatable. Dropbox, the online file storage company, is poised to hold one of the year’s most highly awaited stock market debuts.
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