Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Dropbox, Inc. (NASDAQ:DBX)’s broad appeal, compelling conversion opportunity and high margins give the stock compelling upside, according to KeyBanc Capital Markets.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Rob Owens of KeyBanc Capital Markets initiated coverage on Dropbox with an Overweight rating and $40 price target, implying 30-percent projected upside.
The Thesis
Dropbox has achieved a $1-billion revenue run rate in only two fiscal years, faster than any SaaS company, Owens said in a Tuesday note. The company’s growth trajectory is largely made possible by the broad appeal of the company’s “highly intuitive” platform, he said.
“The company sees a $50-billion opportunity to address increasingly disparate content silos, fragmented legacy productivity tools and the rise of mobile workforces."
Among its base of 500 million free users, Dropbox has identified more than 300 million "high-value" targets that present a promising conversion opportunity, the analyst said.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Dropbox’s gross margin expanded from 33 percent in 2015 to 71 percent in 2017, made possible by company-owned infrastructure that stores over 90 percent of its user content, Owens said.
“Given that Dropbox's infrastructure stores the vast majority of user data, the company's contribution margin exceeds that of software companies using third-party cloud vendors.”
Price Action
At the time of publication, shares of Dropbox were trading up 0.21 percent at $29.08.
Related Links:
Dropbox IPO: Everything You Need To Know
How Airbnb And Dropbox Brought Fintech To Their Company Kitchens
Photo courtesy of Dropbox.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.