Dropbox is set to report its second earnings report as a public company on Thursday after the closing bell, and some see a buying opportunity afoot.
Trading Nation” on Wednesday.
• Dropbox is the dominant storage provider for consumers and businesses, with more than 11 million subscriptions worldwide. Its move in adopting shingled magnetic recording technology in June gives it a competitive edge.
• Although Dropbox could be dismissed as a “consumer” offering rather than an enterprise product, it’s precisely the consumer-friendly aspects that make the product compelling.
• Its clean user interface is another plus, and it could benefit from participating in the subscription-based economy. Subscription growth will be key to watch in its earnings report on Thursday.
• The stock is now at the lower end of its trading range but could touch its post-IPO high of around $43 per share. This would represent an increase of about 36 percent from Wednesday’s closing price.
Wall Street analysts are expecting earnings of 6 cents per share, according to FactSet data. Dropbox shares closed slightly higher on Wednesday.
Bottom line: Dropbox shares have had a bumpy ride since the stock’s debut in March, but Schlossberg is bullish heading into its quarterly earnings report on Thursday evening.