Here's Why Dropbox (DBX) Fell More Than Broader Market
DropboxDropbox(US:DBX) ZACKS·2025-09-17 23:16

Company Performance - Dropbox closed at $31.68, reflecting a -1.52% change from the previous day, underperforming the S&P 500 which lost 0.1% [1] - Prior to this trading session, Dropbox shares had increased by 13.72%, outperforming the Computer and Technology sector's gain of 5.94% and the S&P 500's gain of 2.57% [1] Upcoming Earnings Expectations - Analysts expect Dropbox to report earnings of $0.64 per share, indicating a year-over-year growth of 6.67% [2] - Revenue is anticipated to be $621.66 million, representing a 2.68% decline compared to the same quarter last year [2] Annual Forecasts - Zacks Consensus Estimates project earnings of $2.68 per share and revenue of $2.49 billion for the year, reflecting changes of +7.63% and -2.24% respectively compared to the previous year [3] - Recent revisions to analyst forecasts are crucial as they often indicate shifts in short-term business dynamics, with positive revisions suggesting analyst optimism [3] Valuation Metrics - Dropbox has a Forward P/E ratio of 11.99, which is a discount compared to the industry average Forward P/E of 25.17 [6] - The company currently has a PEG ratio of 2.83, while the average PEG ratio for Internet - Services stocks is 1.69 [7] Industry Context - The Internet - Services industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 100, placing it in the top 41% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]