Dropbox Stock Buy Hold or Sell Recommendation

DBX Stock  USD 32.78  0.29  0.89%   
Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding Dropbox is 'Strong Buy'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Dropbox given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Dropbox, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Dropbox Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Dropbox Stock please use our How to Invest in Dropbox guide.
In addition, we conduct extensive research on individual companies such as Dropbox and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Dropbox. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Execute Dropbox Buy or Sell Advice

The Dropbox recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Dropbox. Macroaxis does not own or have any residual interests in Dropbox or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Dropbox's advice using the current market data and latest reported fundamentals.

Time Horizon

11  Months

Risk Tolerance

I love taking a lot of risk
Execute Advice
Sell DropboxBuy Dropbox
JavaScript chart by amCharts 3.21.15
Strong Buy

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Dropbox has a Risk Adjusted Performance of 0.141, Jensen Alpha of 0.2939, Total Risk Alpha of 0.2616, Sortino Ratio of 0.1916 and Treynor Ratio of 11.72
Our advice module can be used to complement Dropbox investment recommendation provided by average analyst sentiment. It analyzes the company's potential to grow using fundamental, technical, data market data available at the time. To make sure Dropbox is not overpriced, please confirm all Dropbox fundamentals, including its current ratio, total asset, and the relationship between the net income and price to earnings to growth . Given that Dropbox has a price to earning of 24.28 X, we urge you to verify Dropbox market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Dropbox Trading Alerts and Improvement Suggestions

Dropbox has a frail financial position based on the latest SEC disclosures
Over 95.0% of the company shares are held by institutions such as insurance companies
Latest headline from thelincolnianonline.com: Dropbox, Inc. Shares Purchased by Avion Wealth

Dropbox Returns Distribution Density

The distribution of Dropbox's historical returns is an attempt to chart the uncertainty of Dropbox's future price movements. The chart of the probability distribution of Dropbox daily returns describes the distribution of returns around its average expected value. We use Dropbox price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Dropbox returns is essential to provide solid investment advice for Dropbox.
Mean Return
0.30
Value At Risk
-2.2
Potential Upside
2.57
Standard Deviation
1.57
   Return Density   
JavaScript chart by amCharts 3.21.15-5.96-4.45-2.94-1.51-0.07551.392.944.576.27.83VARUpside 0.050.100.15
JavaScript chart by amCharts 3.21.15GOOGLE
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Dropbox historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Dropbox Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument, such as Dropbox, soars without any apparent reason? This usually happens because many institutional investors are aggressively trading Dropbox back and forth among themselves.
Shares
Arrowstreet Capital Limited Partnership2024-09-30
3.8 M
Aqr Capital Management Llc2024-09-30
3.2 M
Charles Schwab Investment Management Inc2024-12-31
2.9 M
Dimensional Fund Advisors, Inc.2024-12-31
2.6 M
Jpmorgan Chase & Co2024-09-30
2.6 M
Bank Of New York Mellon Corp2024-12-31
2.6 M
Ing Investment Management Llc2024-09-30
2.3 M
Acadian Asset Management Llc2024-09-30
2.3 M
Robeco Institutional Asset Management Bv2024-12-31
2.2 M
Blackrock Inc2024-09-30
28.2 M
Vanguard Group Inc2024-12-31
27.5 M
Note, although Dropbox's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Dropbox Cash Flow Accounts

202020212022202320242025 (projected)
Investments(170.6M)(396.1M)(48.5M)312.1M358.9M376.9M
Change In Cash(236.4M)218.1M(300.2M)382.1M439.4M461.4M
Net Borrowings(92.9M)145.8M1.0B105.8M121.7M96.5M
Free Cash Flow490.5M700.9M762.4M759.1M873.0M467.8M
Depreciation159.3M151.4M157.1M170M153M133.4M
Other Non Cash Items21.8M(13.9M)252.5M(74.8M)(86.0M)(81.7M)
Capital Expenditures80.3M28.9M34.9M24.6M22.1M21.0M
Net Income(256.3M)335.8M553.2M453.6M521.6M547.7M
End Period Cash Flow314.9M533M232.8M614.9M707.1M477.4M
Change To Netincome244.6M657.1M300.4M108.8M125.1M118.9M

Dropbox Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Dropbox or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Dropbox's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Dropbox stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.29
β
Beta against Dow Jones0.03
σ
Overall volatility
1.46
Ir
Information ratio 0.18

Dropbox Volatility Alert

Dropbox has relatively low volatility with skewness of 0.07 and kurtosis of 1.82. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dropbox's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dropbox's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Dropbox Implied Volatility

Dropbox's implied volatility exposes the market's sentiment of Dropbox stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Dropbox's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Dropbox stock will not fluctuate a lot when Dropbox's options are near their expiration.
Implied Volatility100%

Dropbox Fundamentals Vs Peers

Comparing Dropbox's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Dropbox's direct or indirect competition across all of the common fundamentals between Dropbox and the related equities. This way, we can detect undervalued stocks with similar characteristics as Dropbox or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Dropbox's fundamental indicators could also be used in its relative valuation, which is a method of valuing Dropbox by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Dropbox to competition
FundamentalsDropboxPeer Average
Return On Equity0.17-0.31
Return On Asset0.11-0.14
Profit Margin0.23 %(1.27) %
Operating Margin0.20 %(5.51) %
Current Valuation11.03 B16.62 B
Shares Outstanding224.98 M571.82 M
Shares Owned By Insiders4.59 %10.09 %
Shares Owned By Institutions95.41 %39.21 %
Number Of Shares Shorted20.96 M4.71 M
Price To Earning24.28 X28.72 X
Price To Book29.81 X9.51 X
Price To Sales3.96 X11.42 X
Revenue2.5 B9.43 B
Gross Profit2.09 B27.38 B
EBITDA553.5 M3.9 B
Net Income453.6 M570.98 M
Cash And Equivalents1.45 B2.7 B
Cash Per Share4.04 X5.01 X
Total Debt2.03 B5.32 B
Debt To Equity3.35 %48.70 %
Current Ratio1.40 X2.16 X
Book Value Per Share(1.78) X1.93 K
Cash Flow From Operations783.7 M971.22 M
Short Ratio7.54 X4.00 X
Earnings Per Share1.73 X3.12 X
Price To Earnings To Growth2.75 X4.89 X
Target Price29.21
Number Of Employees2.69 K18.84 K
Beta0.61-0.15
Market Capitalization10.04 B19.03 B
Total Asset2.98 B29.47 B
Retained Earnings(2.74 B)9.33 B
Working Capital315.1 M1.48 B
Note: Disposition of 3000 shares by Timothy Regan of Dropbox at 25.1477 subject to Rule 16b-3 [view details]

Dropbox Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Dropbox . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Dropbox Buy or Sell Advice

When is the right time to buy or sell Dropbox? Buying financial instruments such as Dropbox Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Dropbox in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Banks
Banks Theme
Large and small money and credit banks and credit services. The Banks theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Banks Theme or any other thematic opportunities.
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Additional Tools for Dropbox Stock Analysis

When running Dropbox's price analysis, check to measure Dropbox's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dropbox is operating at the current time. Most of Dropbox's value examination focuses on studying past and present price action to predict the probability of Dropbox's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dropbox's price. Additionally, you may evaluate how the addition of Dropbox to your portfolios can decrease your overall portfolio volatility.