Dropbox Stock Buy Hold or Sell Recommendation
| DBX Stock | USD 25.62 1.07 4.36% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Dropbox is 'Strong Hold'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Dropbox given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Dropbox, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Dropbox Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Dropbox Stock please use our How to Invest in Dropbox guide. In addition, we conduct extensive research on individual companies such as Dropbox and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Dropbox. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Dropbox |
Execute Dropbox Buy or Sell Advice
The Dropbox recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Dropbox. Macroaxis does not own or have any residual interests in Dropbox or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Dropbox's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Dropbox Trading Alerts and Improvement Suggestions
| Dropbox generated a negative expected return over the last 90 days | |
| Over 95.0% of the company shares are held by institutions such as insurance companies | |
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Dropbox Returns Distribution Density
The distribution of Dropbox's historical returns is an attempt to chart the uncertainty of Dropbox's future price movements. The chart of the probability distribution of Dropbox daily returns describes the distribution of returns around its average expected value. We use Dropbox price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Dropbox returns is essential to provide solid investment advice for Dropbox.
| Mean Return | -0.15 | Value At Risk | -2.77 | Potential Upside | 2.28 | Standard Deviation | 2.62 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Dropbox historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Dropbox Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Dropbox, soars without any apparent reason? This usually happens because many institutional investors are aggressively trading Dropbox back and forth among themselves.
| Shares | Geode Capital Management, Llc | 2024-12-31 | 4.2 M | Goldman Sachs Group Inc | 2024-12-31 | 4 M | Ubs Group Ag | 2024-12-31 | 3.6 M | Aqr Capital Management Llc | 2024-12-31 | 3.3 M | Charles Schwab Investment Management Inc | 2024-12-31 | 2.9 M | Dimensional Fund Advisors, Inc. | 2024-12-31 | 2.6 M | Mackenzie Investments | 2024-12-31 | 2.6 M | Bank Of New York Mellon Corp | 2024-12-31 | 2.6 M | First Trust Advisors L.p. | 2024-12-31 | 2.4 M | Vanguard Group Inc | 2024-12-31 | 27.5 M | Blackrock Inc | 2024-12-31 | 24.9 M |
Dropbox Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Investments | (170.6M) | (396.1M) | (48.5M) | 312.1M | 443.8M | 466.0M | |
| Change In Cash | (236.4M) | 218.1M | (300.2M) | 382.1M | 745.6M | 782.9M | |
| Net Borrowings | (92.9M) | 145.8M | 1.0B | 105.8M | 121.7M | 96.5M | |
| Free Cash Flow | 490.5M | 700.9M | 762.4M | 759.1M | 871.6M | 516.9M | |
| Depreciation | 159.3M | 151.4M | 157.1M | 170M | 137.3M | 131.1M | |
| Other Non Cash Items | 21.8M | (13.9M) | 252.5M | (74.8M) | 60M | 30.5M | |
| Capital Expenditures | 80.3M | 28.9M | 34.9M | 24.6M | 22.5M | 21.4M | |
| Net Income | (256.3M) | 335.8M | 553.2M | 453.6M | 452.3M | 474.9M | |
| End Period Cash Flow | 314.9M | 533M | 232.8M | 614.9M | 1.4B | 1.4B | |
| Change To Netincome | 244.6M | 657.1M | 300.4M | 108.8M | 125.1M | 118.9M |
Dropbox Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Dropbox or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Dropbox's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Dropbox stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.03 | |
β | Beta against Dow Jones | 1.26 | |
σ | Overall volatility | 2.59 | |
Ir | Information ratio | -0.02 |
Dropbox Volatility Alert
Dropbox exhibits very low volatility with skewness of -3.47 and kurtosis of 21.14. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dropbox's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dropbox's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Dropbox Implied Volatility
Dropbox's implied volatility exposes the market's sentiment of Dropbox stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Dropbox's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Dropbox stock will not fluctuate a lot when Dropbox's options are near their expiration.
Dropbox Fundamentals Vs Peers
Comparing Dropbox's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Dropbox's direct or indirect competition across all of the common fundamentals between Dropbox and the related equities. This way, we can detect undervalued stocks with similar characteristics as Dropbox or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Dropbox's fundamental indicators could also be used in its relative valuation, which is a method of valuing Dropbox by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Dropbox to competition |
| Fundamentals | Dropbox | Peer Average |
| Return On Equity | 0.17 | -0.31 |
| Return On Asset | 0.11 | -0.14 |
| Profit Margin | 0.18 % | (1.27) % |
| Operating Margin | 0.21 % | (5.51) % |
| Current Valuation | 8.92 B | 16.62 B |
| Shares Outstanding | 216.42 M | 571.82 M |
| Shares Owned By Insiders | 4.72 % | 10.09 % |
| Shares Owned By Institutions | 95.28 % | 39.21 % |
| Number Of Shares Shorted | 23.44 M | 4.71 M |
| Price To Earning | 24.28 X | 28.72 X |
| Price To Book | 29.81 X | 9.51 X |
| Price To Sales | 2.95 X | 11.42 X |
| Revenue | 2.55 B | 9.43 B |
| Gross Profit | 2.11 B | 27.38 B |
| EBITDA | 486.2 M | 3.9 B |
| Net Income | 452.3 M | 570.98 M |
| Cash And Equivalents | 1.45 B | 2.7 B |
| Cash Per Share | 4.04 X | 5.01 X |
| Total Debt | 2.03 B | 5.32 B |
| Debt To Equity | 3.35 % | 48.70 % |
| Current Ratio | 1.40 X | 2.16 X |
| Book Value Per Share | (2.54) X | 1.93 K |
| Cash Flow From Operations | 894.1 M | 971.22 M |
| Short Ratio | 5.65 X | 4.00 X |
| Earnings Per Share | 1.40 X | 3.12 X |
| Price To Earnings To Growth | 0.86 X | 4.89 X |
| Target Price | 28.1 | |
| Number Of Employees | 2.2 K | 18.84 K |
| Beta | 0.77 | -0.15 |
| Market Capitalization | 7.52 B | 19.03 B |
| Total Asset | 3.33 B | 29.47 B |
| Retained Earnings | (3.15 B) | 9.33 B |
| Working Capital | 527.6 M | 1.48 B |
Note: Disposition of 3000 shares by Timothy Regan of Dropbox at 25.1477 subject to Rule 16b-3 [view details]
Dropbox Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Dropbox . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Dropbox Buy or Sell Advice
When is the right time to buy or sell Dropbox? Buying financial instruments such as Dropbox Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Additional Tools for Dropbox Stock Analysis
When running Dropbox's price analysis, check to measure Dropbox's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dropbox is operating at the current time. Most of Dropbox's value examination focuses on studying past and present price action to predict the probability of Dropbox's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dropbox's price. Additionally, you may evaluate how the addition of Dropbox to your portfolios can decrease your overall portfolio volatility.