- Box looked like a good investment while rumors circulated that the company would likely be acquired or that activist investor Starboard Value would take control of its board.
- Last week PE firm KKR announced a $500 million investment in Box. Box shares immediately dropped 10 percent because a sale or Starboard control became less likely.
- Starboard was pressuring Box to exercise financial discipline, which Box did. That pressure may soon be gone if Starboard sells its shares.
- Box's stock generally gains based on investor sentiment rather than actual company performance. Unless share prices drop substantially, investors, at least for the short term, are unlikely to be all that interested.
- Box's stock has a long history of underperforming, regardless of the company's results. There's little reason to expect that to change now. Any gains in share price will be marginal or short lived.
For further details see:
Box Is No Longer A Deal