Cloud storage and collaboration company Dropbox, which began 10 years ago as a small startup in the San Francisco-based Y Combinator incubator program, went public today and its shares rose nearly 36 percent by the end of the year. market this afternoon. The successful performance makes Dropbox the largest technological OPI since Snapchat in March 2017. Dropbox ended the trading day, under the "DBX" symbol, with a market valuation of around $ 10 billion.
We knew that Dropbox probably expected a favorable outcome, considering that the price of its shares was $ 21, above its initial range of $ 18 to $ 20. But the increase in the stock price, which helped Dropbox to match his latest valuation of private funds is a welcome vote of market confidence for a company that spent years defending itself against the aggressive competition of the main players in the technology industry, including Google and Microsoft. The Dropbox business, comprised of around 11 million subscribers, relies primarily on individual cloud storage plans sold to consumers, but also sells business on enterprise-level subscription plans for the entire company that rely on tools of collaboration and integrations with products such as Salesforce and Microsoft Office. . Only about 30 percent of the 11 million Dropbox users are in business accounts.
While Dropbox is now in a stable position, it still faces the industry's main players in a race to the bottom as cloud storage becomes increasingly economical and, in some cases, is offered to consumers. free form. Dropbox has tried to diversify the types of products it offers, debuting a Google Docs competitor called Dropbox Paper last year, further simplifying its core service and partnering with the same companies it knows threaten their business. The company is having better results than its main competitor, Box, which today suffered a 7 percent drop in the stock price due to the news of Dropbox's debut. But in the future, Dropbox has to find a way to become indispensable for both consumers and companies if it wants to continue growing.