Dropbox, the collaboration company that is based largely on cloud storage, had their IPO yesterday. Dropbox initially started about ten years ago as a little startup in the Bay Area. Their shares went up approximately 36 percent before the market closed in the afternoon. Dropbox’s IPO was the biggest technology IPO since March 2017, when Snapchat decided to go public. Dropbox’s market valuation was close to $10 billion at the end of the day, trading under the symbol “DBX”.
It was speculated that Dropbox would likely do very well for their IPO since their shares are priced at $21, which was higher than the initial $18-$20 range it was projected to be at. This increase in share price is a helpful reminder that the market is confident in the company even with the years of trying to keep back very powerful competition such as Microsoft and Google. Dropbox has close to 11 million subscribers, which hinges on individual plans that are sold to consumers. However, they do also sell company wide subscription plans to larger businesses that rely heavily on tools such as Microsoft Office and Salesforce. With this very active user subscriber base, nearly 30 percent of the tech company’s subscribers have business accounts.
It may look like Dropbox is currently keeping a steady foot on the ground, it still has to be concerned with large industry players as the race for cloud storage is becoming very inexpensive and is now starting to commonly be given for free. The tech company has tried to single itself out from the rest by offering diverse products, such as Dropbox Paper, a competitor for Google Docs. Dropbox is currently doing better than Box, their primary competitor, which took about 7% hit in share price after the news of Dropbox’s IPO. However, in the future, Dropbox will need to find a way to show that their service is here to stay and can offer its’ service to businesses and consumers in a growing fashion.