Homepage / Technology / Dropbox still isn't worth $10 billion, but its valuation has been creeping up
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Technology

Dropbox still isn't worth $10 billion, but its valuation has been creeping up

It’s been four years since investors valued Dropbox at $10 billion. Since then, in the eyes of mutual funds and other shareholders, the company has been unable to justify that price.

But as the cloud file sharing and document collaboration company prepares to go public, investment firms have been gradually marking the price up They now value the company at between about $6.6 billion and $8.5 billion, according to a CNBC analysis of regulatory filings.

Dropbox has confidentially filed for an IPO, CNBC reported on Thursday. In April, Bloomberg, which first broke the news about the confidential IPO filing, reported that Dropbox was profitable, excluding some taxes and other items.

The company did not provide a comment.

Dropbox is in a brutally competitive market, going up against Apple and Google for consumer file storage (photos and videos), and taking on a host of companies from Microsoft and Amazon to Box on the enterprise side. That’s forced the company to shutter some big initiatives in its effort to find a money-making business model.

In 2015, as Box was struggling on the public markets, reports came out showing that some firms had severely marked down the value of their Dropbox holdings.

The recent increases in Dropbox’s price suggest that it might be a better time for the company to go public. But it will still need to grow profitably and excite the public markets to return money for many of its investors.

After going public, Dropbox could wind up with a market cap below or equal to its $10 billion private valuation from 2014, said Rohit Kulkarni, managing director for private investment research at SharesPost.

He estimates that the company generated about $1 billion in revenue last year, with 25 percent growth and close to two-thirds of sales coming from enterprises.

“The bigger part of the story they would probably be looking to tell is they do not need a capital influx, given their financial profile,” Kulkarni said. “That would be the key argument that they would want to make to deserve a premium valuation, as opposed to many other cash-burning unicorns.”

Here’s a rundown of some investment firms that have changed how they value Dropbox:

BlackRock estimated that its shares in Dropbox were worth $18.23 each as of April 2015, but two and a half years later, at the end of October 2017, they were down 27 percent to $13.30. That’s up from $10.87 a year earlier. BlackRock’s global allocation fund got its stake in Dropbox in the company’s January 2014 funding round.

Fidelity’s Small Cap Growth K6 Fund has held stock in Dropbox since 2012. While at the end of July, the price was down 30 percent from early 2015, at $13.40, it was up from $11.10 a year earlier.

GSV Capital, which got in Dropbox’s series A-1 round, prices its shares 45 percent below where they were in mid-2015. The stock was pegged at $12.58 at the end of September. But that’s up from $10.05 per share at the end of 2016.

Hartford Funds’ Capital Appreciation Fund, which invested in Dropbox in 2014, priced the shares at $19.84 in October 2015. One year later the price fell to $19.10, and most recently it was down to $16.20.

Principal’s LargeCap Growth Fund I valued Dropbox shares at $19.10 in April 2015 after buying them in 2014, and they were down 33 percent to $12.79 at the end of October. That’s up from $12.37 in April 2016.

USAA, whose Science & Technology Fund bought shares in Dropbox in 2012, valued them at $19.10 in April 2015. The price was marked down to $13.02 as of October, which was up from $11.03 a year earlier.

Source: Tech CNBC
Dropbox still isn't worth billion, but its valuation has been creeping up

Comments are closed.