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Box Is A Pricey Long-Term Growth Story

Jun. 11, 2020 8:16 PM ETBox, Inc. (BOX)DBX, GOOGL, MSFT, OTEX, GOOG, OTEX:CA8 Comments
Alpine Capital profile picture
Alpine Capital


  • Box is a compelling long-term growth play with multiple growth drivers.
  • However, the company’s stock is richly valued compared to its competitors.
  • Box is a good business to own for the long term, and long-term investors can buy the stock on dips.

Box's (NYSE:BOX) share price has increased significantly after the coronavirus sell-off in the markets. Box is a high growth company with multiple growth drivers. In the long term, the stock has meaningful upside left. However, in the near term, the stock is expected to stay in a range. The company's security and platform products are its primary growth drivers. Long-term investors can buy the stock during pullbacks to maximize their profit.

Box offers its customers a Software-as-a-Service (SaaS) cloud content management platform. The platform helps organizations manage, share, and access their content from anywhere and on any device. The platform also helps users collaborate on content both internally and externally, develop custom applications, and implement data protection. The platform improves employee productivity and accelerates and automates content-driven business processes. The company's marketing strategy is selling the platform with the full set of Box capabilities.Source: Pxfuel

Growth Drivers

Box offers cloud content management products for web, mobile, and desktop platforms for developing custom apps. The company's primary growth driver is the security features of its products. The company has invested heavily to protect its customers from most dangerous security threats. Files stored in the Box Platform are encrypted at rest and in transit. Box's IRM (information rights management) feature helps users securely access and manage files by providing control over users' ability to access files. The company's KeySafe product helps users implement higher levels of data security and protection. The company's newest offering, Box Shield, offers real-time prevention of security threats. The product has capabilities that reduce the risk of accidental data leakage. In addition, the product offers features that can detect potential insider security threats by machine-learning capabilities.

The company's ability to provide organizations the power of machine-learning algorithms from leading companies like IBM (IBM), Microsoft (MSFT

This article was written by

Alpine Capital profile picture
I am a growth-focused full-time investor with 20+ years of investing experience. I write on Seeking Alpha to sharpen up my stock picking skills and to share my investment ideas with Seeking Alpha readers.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (8)

Good write-up. Their ability to provide workflow automation to automate some routine tasks and proactive threat detection via Box Shield is unique to their product. No wonder they are ranked as industry leader in content collaboration space over Microsoft, Google and Dropbox. Below is the independent analysis done by Gartner 3rd party www.box.com/...

One thing that makes me wonder what is going on here is, i see Box stock only fluctuate between 9.50$ and 21$. I am not sure why this is not taking-off beyond 21$. I only see a very minimal occasional spike beyond 21$
Box is an awesome product. My work has used Box now for a couple years and what a game changer! Love it!
Illuminati Investments profile picture
Sounds like a good acquisition target for IRM, although I doubt they could afford them.
I'll take your word, long before I'll listen to Jim Cramer. He's says to stay far away from Box. He thinks DropBox is a better buy. I own Box. Bought it at 10.67. I'm patient.
Interesting in that Cramer and CNBC hyped BOX IPO... I bought the same day! Still remember most of that day it was all about BOX..
Honest. I read the transcripts from his show at night, and was asked about BOX, and said to avoid it. Said, he preferred DropBox. I missed what you viewed. I will do a search and get caught up. He must have changed his view on the company. Thank you for making me aware of this.
I was just wondering if this was different from Dropbox($dbx?)

Never ceases to amaze me how a business of absolutely nothing (anyone remember the ICO or internet coin offerings thing?) can still offer up mind-blowing valuations. "Just takes a growth narrative." Again tho I think needs pointing out as clever as these matters can be they aren't an offer for public finance let alone the pretense of budgeting for public affairs. In the alternative there used to be the "Pound Sterling" of course.

No one on Earth can even afford that?
Then the US Dollar Standard it is then.
Long $slv silver etf
Strong buy
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