Investment Thesis
Dropbox (DBX) once had strong potential. However, today, a combination of increased competition and specialization has led Dropbox to operate as a former shadow of itself.
For new shareholders, paying up close to $8 billion market cap sets them up for a very negative risk-reward profile.
On balance, this stock is best avoided.
Revenue Growth Is Slowing
Dropbox is heavy on rhetoric but ultimately its revenues growth rates are decelerating:
Source: author's calculations (GAAP revenues; not F/X adjusted)
Going through the earnings call and there is a lot to like. For