Technology companies shine at high margin businesses, and no one really wants to compete on price as its a race to the bottom - Google or Microsoft can sell their cloud storage products for pennies because they derive value from the user being in their ecosystem. Maybe COGs improvements? None of their other products have really taken off - paper? Use Slack or Microsoft Teams.Ĭloud storage is quickly becoming a commodity, if it isn't already. I'm very tempted.ĮDIT: Welp, this article convinced me and I bought me sum DBX Įh, I still don't get what they've been doing the last like 7 years. What do you think? Is DBX definitely a buy or am I missing something here? It's currently trading well-below $24 and it's extremely volatile. The service continues to be pretty popular. I really don't see them losing ground any time soon.
I'm aware that DBX is up against strong competition, but they are finding ways to dynamize their business, like the recent acquisition of HelloSign, for example. The numbers presented and the conference call made it clear that Dropbox business is growing strongly and they managed to increase their paying user base by 400,000 the previous quarter alone.īut I wonder if I'm missing something. Just seems like an irrational reaction, momentary short avalanche or some algo nonsense going on. The explanation that has been given for the stock tanking today is lower than expected margins guidance but that sounds like a lame excuse to me. In the meantime, several firms upgraded DBX rating today. Like most other cloud-based business stocks this season, DBX smashed earnings estimates yesterday and gave good guidance.
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