DBX is a good long term holding.
Intro:
"Dropbox, Inc. provides a content collaboration platform worldwide. Its platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. As of December 31, 2021, the company had approximately 700 million registered users. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries." (Yahoo)
Biggest competition is Google Drive
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Presently trading at below average PE ratio of the NASDAQ = 24 compared to 32 (As of today)
Increasing free cash flow (40% last year)
Earnings and net income growing year over year
profitable business
Outstanding shares decreased by 7.5% over the last year (Due to repurchasing of shares)
On Feb 11, 2022 announced will be re-purchasing an additional 1.2 billion of its common stock (14.3% of their outstanding shares!) And they will likely execute on this plan as this is consistently down trending.
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Where as I am concerned with competition, specially from Google Drive. There is no evidence that Dropbox is losing market share. On the contrary, the re-occurring revenue and customer base is increasing, and customers are purchasing more products.
Maybe I am thinking too simply here - I personally believe in their ability to deliver being specialized in the sector, whereas other competitors have many completely unrelated sub-divisions or businesses, DBX is focused on providing the cloud platform to its customers as its main source of revenue.
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Average analyst expected growth rate to 2025 is just above 8%
Average analyst expected earnings growth rate to 2025 is just above 22%
Most bearish analysts have a price target of $25.
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I have slowed down purchasing stocks lately, as I want to have better and better opportunities to average out my prices in my holdings. But I believe in this market, there are opportunities presenting themselves consistently.
"Dropbox, Inc. provides a content collaboration platform worldwide. Its platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. As of December 31, 2021, the company had approximately 700 million registered users. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries." (Yahoo)
Biggest competition is Google Drive
________________________________________________________
Presently trading at below average PE ratio of the NASDAQ = 24 compared to 32 (As of today)
Increasing free cash flow (40% last year)
Earnings and net income growing year over year
profitable business
Outstanding shares decreased by 7.5% over the last year (Due to repurchasing of shares)
On Feb 11, 2022 announced will be re-purchasing an additional 1.2 billion of its common stock (14.3% of their outstanding shares!) And they will likely execute on this plan as this is consistently down trending.
________________________________________________________
Where as I am concerned with competition, specially from Google Drive. There is no evidence that Dropbox is losing market share. On the contrary, the re-occurring revenue and customer base is increasing, and customers are purchasing more products.
Maybe I am thinking too simply here - I personally believe in their ability to deliver being specialized in the sector, whereas other competitors have many completely unrelated sub-divisions or businesses, DBX is focused on providing the cloud platform to its customers as its main source of revenue.
________________________________________________________
Average analyst expected growth rate to 2025 is just above 8%
Average analyst expected earnings growth rate to 2025 is just above 22%
Most bearish analysts have a price target of $25.
________________________________________________________
I have slowed down purchasing stocks lately, as I want to have better and better opportunities to average out my prices in my holdings. But I believe in this market, there are opportunities presenting themselves consistently.
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