The latest trading session saw Dropbox (DBX) ending at $24.82, denoting a -0.44% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a loss of 0.7%, and the technology-centric Nasdaq increased by 0.04%. The online file-sharing company's stock has climbed by 2% in the past month, exceeding the Computer and Technology sector's gain of 0.73% and the S&P 500's gain of 1.95%. The investment community will be closely mon ...

In the latest trading session, Dropbox (DBX) closed at $24.47, marking a -0.08% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.7%. On the other hand, the Dow registered a gain of 1.26%, and the technology-centric Nasdaq increased by 2.51%. Shares of the online file-sharing company witnessed a gain of 0.66% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.45% and underperforming the S&P 500's gain of 1.27%. T ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style ...

Group 1: Company Performance - Dropbox's stock closed at $24.59, reflecting a +1.32% increase, outperforming the S&P 500's gain of 0.54% [1] - Over the past month, Dropbox shares have risen by 6.45%, surpassing the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 4.86% [1] Group 2: Upcoming Financial Results - Dropbox is expected to report an EPS of $0.52, which is a decrease of 7.14% from the same quarter last year [2] - The consensus estimate for quarterly revenue is $636.93 million, representing an increase of 0.62% year-over-year [2] Group 3: Fiscal Year Projections - For the fiscal year, earnings are projected at $2.22 per share, indicating a +12.12% change from the previous year, while revenue is expected to be $2.54 billion, reflecting a +1.73% change [3] - Recent changes in analyst estimates suggest a positive outlook for Dropbox's business and profitability [3] Group 4: Valuation Metrics - Dropbox's Forward P/E ratio is 10.93, which is significantly lower than the industry's Forward P/E of 30.5, indicating a valuation discount [6] - The company has a PEG ratio of 0.89, compared to the Internet - Services industry's average PEG ratio of 2.12 [7] Group 5: Industry Ranking - The Internet - Services industry, which includes Dropbox, ranks in the top 37% of all industries according to the Zacks Industry Rank [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style ...

Zacks Premium and Style Scores Overview - Zacks Premium provides tools for investors to become smarter and more confident, including daily updates of Zacks Rank, Zacks Industry Rank, Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - Zacks Style Scores complement the Zacks Rank by rating stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market over the next 30 days [2][3] Style Scores Breakdown - **Value Score**: Evaluates stocks based on valuation metrics like P/E, PEG, Price/Sales, and Price/Cash Flow to identify undervalued stocks [3] - **Growth Score**: Focuses on a company's financial strength, health, and future outlook by analyzing projected and historic earnings, sales, and cash flow [4] - **Momentum Score**: Identifies stocks with upward or downward trends in price or earnings outlook using factors like one-week price change and monthly percentage change in earnings estimates [4] - **VGM Score**: Combines Value, Growth, and Momentum Scores to highlight stocks with the most attractive value, growth forecast, and momentum [5] Zacks Rank and Style Scores Integration - Zacks Rank uses earnings estimate revisions to rate stocks, with 1 (Strong Buy) stocks delivering an average annual return of +25.41% since 1988, outperforming the S&P 500 [6][7] - Over 800 stocks are rated as 1 (Strong Buy) or 2 (Buy) daily, making it challenging to select the best stocks without additional tools like Style Scores [7][8] - Combining Zacks Rank 1 or 2 with Style Scores of A or B increases the likelihood of selecting high-performing stocks [8][9] Case Study: Dropbox (DBX) - Dropbox is a cloud-based platform serving over 700 million registered users across 180 countries [10] - DBX holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Value Style Score of B, supported by a forward P/E ratio of 11.32 [10] - Four analysts revised their earnings estimates upwards for fiscal 2024, increasing the Zacks Consensus Estimate by $0.10 to $2.22 per share, with an average earnings surprise of 13.7% [11] - DBX's strong Zacks Rank and top-tier Style Scores make it a compelling option for investors [11]

The software-as-a-service company has been overlooked by the market and is now a steal for investors. Dropbox (DBX -0.09%) hasn't gotten the headlines of other cloud companies, but it's well positioned to grow as companies demand more storage and artificial intelligence (AI) functionality. In this video, Travis Hoium explains why the price is right for this company as it returns to growth. *Stock prices used were end-of-day prices of Aug. 12, 2024. The video was published on Aug. 12, 2024. ...

funky-data Despite a cheap valuation, Dropbox remains a snare as a value trap. Data by YCharts The markets are expecting a tough macro climate across all industries heading into the second half of this year, but when investing in tech stocks, one rule remains paramount: don't trust a company that isn't able to grow. For Dropbox (NASDAQ:DBX), this unfortunately appears to be the case, as the file storage company continues to post lackluster growth rates and customer additions. Year to date, shares have lost ...

funky-data Growth stocks are great, until the growth slows down. Then you have a relatively stagnant company trading at bad premiums to its underlying value. Today, we'll be looking at one of those growth stocks that has seen some slowing of its growth in recent quarters, Dropbox (NASDAQ:DBX). The software company has some interesting multiples which may make it worth our attention. We will be looking at Dropbox not just for its lack of shareholder equity, but also from a potential value and growth perspect ...

Revenue Growth - Total annual recurring revenue (Total ARR) increased to $2,573 million as of June 30, 2024, compared to $2,523 million as of December 31, 2023, and $2,500 million as of June 30, 2023[191]. - Total revenue for the three months ended June 30, 2024, was $634.5 million, compared to $622.5 million for the same period in 2023, indicating a growth in revenue[220]. - Revenue for the six months ended June 30, 2024, was $1,265.8 million, an increase of $32.2 million or 2.6% compared to $1,233.6 million in the same period of 2023[237]. - Revenue for the three months ended June 30, 2024, was $634.5 million, an increase of $12.0 million or 1.9% compared to $622.5 million in the same period of 2023[227]. User Growth - The number of paying users grew to 18.22 million as of June 30, 2024, up from 18.12 million as of December 31, 2023, and 18.04 million as of June 30, 2023[195]. - The overall paying user growth rate has declined, and future growth in paying users is expected to fluctuate, necessitating a focus on increasing average revenue per paying user[206]. - The company served over 700 million registered users but only 18.22 million paying users as of June 30, 2024[284]. Financial Performance - Net income for the three months ended June 30, 2024, was $110.5 million, significantly higher than $43.2 million for the same period in 2023, showcasing strong operational performance[220]. - Free Cash Flow (FCF) for the six months ended June 30, 2024, was $391.0 million, up from $322.6 million in the same period of 2023, primarily driven by increased cash from operating activities[203]. - Net income for the three months ended June 30, 2024, was 17% of revenue, compared to 7% in the same period of 2023[223]. Cost Management - Cost of revenue decreased to $107.0 million for the three months ended June 30, 2024, from $120.1 million in the same period of 2023, contributing to improved gross profit[220]. - Research and development expenses for the three months ended June 30, 2024, were $227.1 million, down from $262.8 million in the same period of 2023, reflecting cost management efforts[220]. - Sales and marketing expenses for the three months ended June 30, 2024, were $112.5 million, compared to $120.9 million in the same period of 2023, indicating a reduction in marketing costs[220]. Cash Flow and Investments - Net cash provided by operating activities was $406.1 million for the six months ended June 30, 2024, an increase of $78.6 million compared to the same period in 2023[254][257]. - The company has a $500.0 million credit facility available for additional working capital flexibility as of June 30, 2024[249]. - The company repurchased 22.4 million shares of Class A common stock for $543.8 million during the six months ended June 30, 2024[248]. Market and Competitive Landscape - The competitive landscape includes major players like Microsoft, Amazon, and Google, which poses challenges for the company's market position[300]. - Demand for the platform is sensitive to pricing, and competitive pricing strategies may negatively impact top-of-funnel and conversion rates[303]. - The company anticipates intensified competition due to new technologies and market entrants, with competitors having advantages such as greater name recognition and larger marketing budgets[302]. Strategic Initiatives - The company plans to continue investing in infrastructure and user support to accommodate growth and enhance platform reliability[208]. - The company is focused on increasing recurring revenue by encouraging both basic and paying users to upgrade to premium offerings[280]. - The company is making significant investments in AI to enhance its platform, although there are risks associated with the success of these new products and potential regulatory scrutiny[306]. Risks and Challenges - Economic factors such as inflation, rising interest rates, and geopolitical issues may lead to reduced spending by paying users, impacting revenue growth[299]. - The company has faced and may continue to face cybersecurity threats, which could compromise user data and harm its reputation[290]. - The company has experienced fluctuations in renewals and upgrades of subscriptions, which may continue to impact future revenue growth[279]. Operational Considerations - The company has retained a portion of its office space while subleasing the remainder as part of its Virtual First strategy[180]. - The company may incur additional impairment charges depending on the state of the corporate real estate market[181]. - The company’s ability to maintain adequate infrastructure capacity is critical, and misestimations could lead to either excess costs or inability to meet user demand[314].