Dropbox debuts on Nasdaq
- Author: Joey Payne Mar 26, 2018,
Mar 26, 2018, 0:46
Dropbox shares went for more than expected.
The stock opened at $29 on the Nasdaq and shot up to as high as $31.60 in early trading. Over the years we've seen plenty of tech firms take their companies public (with varying degrees of success), and it was just about this time last year when we witnessed Snap start its IPO with a bang-even if today's price is now below where it started.
Including the restricted stock units, the value of the company now increases to over $9.1 billion.
Dropbox's much-awaited debut ended a long dry spell in the U.S. IPO market for big tech names.
Earlier this year, Dropbox reported revenues of more than $1bn in 2017 when its plans for an IPO were revealed.
Dropbox has never turned an annual profit, but the company has achieved annual sales growth of more than 30 percent in recent years, with its revenue topping $1 billion annually.
The cloud storage service has many large competitors such as Alphabet's (NASDAQ: GOOGL) Google and Apple Inc. Popular for its cloud-based files storage and syncing service, the company was able to raise a whopping $750 million from the event.
"The strong performance of the Dropbox IPO may open the door for more technology unicorns to IPO throughout the rest of 2018", said Sohail Prasad, co-founder and co-chief executive of Equidate, a platform for trading of shares in private technology firms.
The IPO is yet another gauge of the ability of unicorns - tech startups valued at $1 billion or more - to thrive on the public market. "The decision by Salesforce.com (CRM) to invest $100 million in the IPO is another promising sign, and may provide investors a backstop in case fundamentals of the business weaken". The money-losing meal-kit delivery company raised less than expected at a $2 billion valuation, 38 percent lower than its last private round.
Andrew W. "Drew" Houston, the co-founder and CEO of Dropbox. And, can Dropbox differentiate itself enough from a very large field of competitors to make it as a publicly traded company?