Investors, especially those who specialize in picking tech stocks, will now have one additional company to consider as an investment option. A decade after its founding, Dropbox is now a publicly traded company starting Friday, March 23, 2018.
The San Francisco-based firm successfully hosted its IPO on Thursday where investors bought Dropbox share at $21. Popular for its cloud-based files storage and syncing service, the company was able to raise a whopping $750 million from the event.
The IPO price of $21 per share is already way above the $16 to $18 price range previously proposed by the company earlier this month. The final price was even higher than the latest estimate when Dropbox raised it to between $18 and $20 in its regulatory document filed on Wednesday.
— CNBC (@CNBC) March 23, 2018
At its current share price, Dropbox is now a publicly traded behemoth with a market capitalization of $9.1 billion. However, this amount still falls short compared to the $10 billion valuation it received during its last round of private funding in 2014.
Of course, many are fearful that the tech company’s valuation trend will go downhill after its IPO, which seem to hound some tech listings. For instance, investors had to wait for almost a year before Snapchat’s shares rebounded and started trading above its June 2017 IPO price of $17 per share. This is a turn off for short-term investors who do not wish to hold on to a share for too long.
— TheStreet (@TheStreet) March 22, 2018
But most investors remain upbeat on Dropbox’s future earning potential. The company is already cash flow positive and performed well last year. Its sales are on the rise, garnering a massive $1.11 billion in revenues for 2017 alone. The figure represents a 30 percent increase compared to 2016’s performance.
[Featured image via Dropbox]