Dropbox: A Broken Box Or A Magic Box?

About: Dropbox, Inc. (DBX)
by: Olive Tree Investment
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Olive Tree Investment
Growth at reasonable price, event-driven, long-term horizon, value

Dropbox share price has gone through a wild ride since its IPO, and it's currently back to its IPO level. Is Dropbox a worthwhile long-term investment?

In this article, I will first discuss the possible reasons for the negative price actions and why a long-term investor should look past the short-term uncertainties.

I will then dive deeper into Dropbox's business fundamentals to prove that it's a wonderful business with favorable long-term prospects.

I will then perform a valuation on Dropbox based on long-term growth expectations and discuss the potential risks.

Finally, I conclude that Dropbox could potentially be a good investment idea for a patient long-term investor with a five- to 10-year investment horizon.

After a wild IPO run-up to the 52-week high of $43.50, Silicon Valley unicorn Dropbox's (DBX) share price made a round trip back to its $21 IPO price range and remained depressed for