Dropbox (DBX), the popular file-sharing company that caters primarily to consumers unlike its enterprise-focused rival Box (BOX), has just become proof that software companies that enter the so-called "penalty box" can claw their way out. After reporting fourth-quarter results, after a sluggish 2019 in which Dropbox consistently underperformed the broader market, shares of the software company jumped more than 20%, their best one-day performance in recent memory.
The question for investors now: does the Dropbox rally have further steam?
I turned bearish on Dropbox last quarter due to