Based in San Francisco, Dropbox Inc. (DBX) provides a collaborative platform that allows people and organizations worldwide to build a “smart workspace,” explains Mark Skousen, editor of Home Run Trader — and a participant in The MoneyShow Orlando Conference on June 10-12. Learn more here.
The things we own are increasingly smart: phones, laptops, credit cards, vehicles and even our homes.
We’ve gone from a few basic software programs — like Word, Excel and Outlook — to hundreds of popular apps, communications channels and project management systems that connect more people in more ways than ever before.
Documents, transactions and conversations are now spread across different platforms. As a result, workers — who switch between apps approximately every six minutes — get out of sync.
That leads to disorganization and inefficiency, which are frustrating issues for every business or organization. Dropbox solves this problem.
There is no switching between platforms, apps and content. A smart workplace unifies them, so everything is more accessible.
Dropbox uses artificial intelligence to cut through clutter and prioritize what matters most, whether that’s text for a document, images for a file or content for a meeting.
Every person working on a file or project is brought together — rather than being scattered across fragmented communications channels — lowering costs and increasing efficiencies. That’s worth a lot to organizations.
Dropbox already has over 700 million registered users in more than 180 countries, including 56% of the companies in the Fortune 500. Annual revenue is nearly $2 billion. And sales are growing 12% year over year.
I estimate that Dropbox will earn $1.36 a share this year and nearly $2 a share in 2022. And that projection may be too conservative. At least, Director Bob Mylod seems to think so.
He recently purchased 100,000 shares at $24.59 each, an investment of $2.6 million. According to SEC filings, Mylod owns 222,698 shares in a limited liability corporation he controls and another 78,908 shares in his personal account.
My advice? Do yourself a favor and follow his lead. Buy Dropbox at market and place a sell stop at $22 for protection. If you prefer to play this more aggressively, try the DBX October $30 calls, which last traded for $1.60 and expire on Oct. 15.
