Dropbox, Inc.
Dropbox, Inc. (DBX) provides cloud-based file storage, collaboration and content‑management tools for consumers and business customers. Its core offering is a subscription service that lets users store, sync and share files across devices, with added workspace features for teams. The company generates most revenue from recurring subscriptions, which supports relatively high gross margins and scalable economics; its market capitalisation is about $8.05 billion. Key investor metrics to monitor include user growth, enterprise penetration, average revenue per user (ARPU) and free cash flow. Dropbox faces strong competition from large cloud and productivity platforms as well as specialist players, which can pressure growth and pricing. The company’s history of cash generation is a positive, but future performance depends on execution, product differentiation and broader macro conditions. This summary is educational only and not personalised investment advice; values can fall as well as rise.
Stock Performance Snapshot
Analyst Rating
Analysts recommend holding Dropbox's stock with a target price of $29.63, indicating limited growth potential.
Financial Health
Dropbox is performing well with strong revenue and cash flow, indicating a solid financial position.
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Baskets Featuring DBX
SaaS & Cloud Computing
Invest in the digital revolution that's reshaping how businesses operate worldwide. This collection of carefully selected stocks represents companies at the forefront of software innovation, cloud technology, and digital transformation.
Published: May 23, 2025
Explore BasketWhy You’ll Want to Watch This Stock
Subscription revenue model
Recurring subscriptions can provide predictable revenue and strong gross margins, though growth may moderate as markets mature.
Enterprise expansion opportunity
Moving deeper into business and team features can raise ARPU and stickiness, but competition from major cloud suites is a constraint.
Competition and risks
Large rivals and price pressure are ongoing challenges; regulatory and macro shifts can also affect demand. Past performance is not a guarantee.
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