The recent price jump after the IPO to about USD 30 means the company has a market cap of around 10 billion. IMHO, the company doesnt offer much value in the long-term as an independent company.
The company is currently not profitable: Net Income of around -110m, profit margin of around -10%
The company is a one-trick-pony: since it's founding about 10y ago, the company only offers one service, file storage solutions.
The product is not really unique: I don't see a requirement that Dropbox meets that Microsoft OneDrive, Google Drive, etc. do not also meet.
The company's competitors have deep pockets: Amazon (drive), Google (Drive), Microsoft (OneDrive) have much deeper war chests than Dropbox
The company's competitors have eco-systems that they can leverage when positioning their cloud storage solutions: Amazon bundles their cloud storage to Amazon Prime, Microsoft can integrate MS Office well into OneDrive, etc.
I would very much like to hear differing opinions that outline how and why Dropbox will become profitable and why it should be worth 10b or even more today.
Submitted March 23, 2018 at 01:04PM by haveaniceday4282 https://ift.tt/2GmRbNQ
