Is It Time To Take A Look At Dropbox (dbx)?

Discussion in 'Investment Charts' started by Chartman, Feb 22, 2020.

  1. Chartman

    Chartman Senior Investor

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    It is fair to say that Dropbox shares have not set the world alight since they were floated. However, a 20% increase in the share price this week has put the company back into focus. Is it time to take another look?

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    Feb-21-20

    Dropbox shares climb nearly 20% as company makes a key prediction American City Business Journals +19.96%
    [video]Dropbox's Jump Shows How Misunderstood Tech Stories Can Create Opportunities TheStreet.com
    Surging Dropbox Stock Attracts Options Bulls Schaeffer's Investment Research
    Dropbox stock surges toward best day on record as bulls say profit focus is a turning point MarketWatch
     
  2. Buyonthedips

    Buyonthedips Senior Investor

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    I use Dropbox and to be honest I would not be without it. The only issue, would I pay for the enhanced service? If I had to I probably would. There will be millions of people in the same situation as me so on that basis I would be a buyer. Can they add any enhanced services to what they have now?
     
  3. Chartman

    Chartman Senior Investor

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    All shares are being smacked on the back of huge market falls of late. If the DropBox share price fall gets over done then it might be worth picking some up and tucking them away. Is it over done yet - probably more downside if the markets keep falling. Keep a close eye on this one!
     
  4. gowiththeflow

    gowiththeflow Senior Investor

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    I would be tempted to keep an eye on these shares and if, as I suspect, the market has a lot more downside to go, start to pick some up on oversold positions. Many business and individuals use DropBox but the key is switching them to a paid service in due course.
     
  5. Buyonthedips

    Buyonthedips Senior Investor

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    I agree - I think we will see a huge sell-off towards the end of the coronavirus crisis. That will be the time to buy!
     
  6. longtermbull

    longtermbull Administrator Staff Member

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    The hardest thing for companies such as DropBox is making a repuation for themselves in the market place and attracting new customers. I would argue that the company is now beyond that stage, indeed it is a central part of many businesses these days, and the next phase is monitizing the millions of clients the company has. If it can do that, well the sky really is the limit.....
     
  7. Chartman

    Chartman Senior Investor

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    A prime example of buying on the bad days - there is a godo business in here and there may be a chance in a lifetime to buy a chunk on the really bad days in the market. Even if you have to lock them away for a couple of years. Will markets give a premium going forwards to online based businesses which have a little more immunity from the impact of the virus?
     
  8. Buyonthedips

    Buyonthedips Senior Investor

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    Buy on the dips - this is a firm favourite with businesses and if they can introduce a workable revenue model it could do really well. If not then it would make a great add-on for a larger company.
     
  9. longtermbull

    longtermbull Administrator Staff Member

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    I use Dropbox and have for many years. Even though I am still using the free version I think at some point I will be switching to the premium package and the many benefits this would bring to my business. So, in the long term, assuming a major competitor does not emerge, I would be a buyer of the shares on weakness in the current market.
     
  10. Chartman

    Chartman Senior Investor

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    I was a little surprised that Dropbox was not takenover by one of the giants before it went to market. It would have been a very useful addition for many tech/IT based companies out there. The company has a respected brand name which is not always easy to build, and more impoartantly, keep these days.
     
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