Buy Dropbox Shares: [Before Investing Read Here]
Published: February 24th, 2021 by Valentina
Dropbox intercepted the need to save our files directly online and always be able to access them, and it was a success. But is this the right time to buy Dropbox shares or are there risks we have underestimated?
Given that there are always risks in trading, in this guide we will show you all the aspects that affect the future performance of this stock, and specifically we will describe:
- Analysis of Dropbox’s financial situation
- The forecasts made by major analysts
- The best platforms to invest in stocks
Before starting, we want to say that OnlineTradingCourse.net has selected the best platforms where to buy Dropbox shares (or sell them short) without paying commissions, one of which is offered by eToro, and here are the others in this short table:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 10€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Buy Dropbox shares: Real-time quotation and price
Dropbox was one of the richest startups in the history of the American stock market. It reached a capitalization of over $ 10 billion and quickly became one of NASDAQ’s most popular stocks.
The company was founded with the intention of offering a lean and fast cloud storage service in a time where the big Bigs still did not believe enough in the future of this technology.
Dropbox was founded in 2007, when 2 MIT students, Drew Houston and Arash Ferdowsi, gave birth to this startup.
The company has suffered strong criticism for privacy issues and security breaches, but is currently considered one of the safest software on the market.
The company is listed on the New York Stock Exchange and is part of one of the most iconic stock indices ever: the NASDAQ.
How to buy Dropbox shares
Even if the stock is listed on the New York Stock Exchange, buying Dropbox shares is not that complicated: You just need a PC, an internet connection, and an online broker that is reliable.
The intermediaries on the market are not all the same and to determine the reliability of a Broker it is necessary to verify that it is in possession of these minimum requirements:
- It must offer CFDs, contracts for difference, that allow you to invest both up and down (short selling).
- You don’t have to pay commissions.
- It must have the authorization of at least one supervisory body such as FCA or CySEC.
Once you have chosen the Broker (in the next paragraph we will see how to do it), in order to buy Dropbox shares (or sell them) on one of these trading platforms, you must:
- Buy the Dropbox CFDs to earn if the shares go up
- Sell the Dropbox CFDs to earn if the shares go down.
When the stock reaches the expected price, the transaction can be closed and any net profits collected, without paying commissions.
Where to buy Dropbox shares
Here’s how to choose your ideal broker in 3 steps:
- Sign up for the Brokers listed at the beginning of the guide (it’s free)
- Test the Demo account
- Deposit money on the platform of your choice
If you don’t have time to carry out all those tests, you can rely on the evaluations made by OnlineTradingCourse.net, which has carried out numerous analyzes on the CFD Brokers available on the market.
From these comparisons, some brokers stand out above all others for a series of reasons that we will see in the next paragraphs. The best trading platforms on the market are those offered by eToro, ForexTB and Trade.com.
Let’s explore the characteristics of these brokers in the next paragraphs.
eToro with its community of over 7 million active traders is the leader of the market.
The security of this intermediary also derives from its numerous licenses, such as that of FCA.
The most interesting feature of eToro is its platform, which is fast and intuitive like few others.
Below the Dropbox stock:
To buy Dropbox shares (or sell them), you have to click on “Invest”, decide whether to Buy or Sell the stock, and how much to invest in the operation.
Its fame comes not only from the intuitive platform but also from a revolutionary patent called Copy Trading.
This system allows you to copy the market transactions of the best investors in the world (chosen directly on eToro), in a fully automated manner and at no additional cost.
To use Copy Trading you have to follow these steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders (which can be copied):
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB has achieved its current popularity thanks to a series of completely free services.
Clearly, this broker is also absolutely safe and can boast the authorization of the prestigious CySEC, valid throughout Europe and the UK.
ForexTB allows you to choose between 2 trading platforms, both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
To buy Dropbox shares (or sell them) simply click on Sell or Buy and decide how much money to invest in the operation.
ForexTB’s famous trading support is based on the Free Trading Signals which are sent to all investors. These indications are very precise and are successful 70% of the time, an excellent support for online trading.
ForexTB tries to help above all novice traders and for this reason, it has created for free a Trading Course considered among the best in its category. This ebook summarizes the basics of online trading and allows you to learn technical analysis in a simple way and with practical examples.
Trade.com notoriety has spread incredibly thanks to its very professional platform and to the entry threshold.
The minimum deposit required by Trade.com to open a real account is in fact only 100 Euros, much lower than the average on the market.
The security of this intermediary is guaranteed by FCA.
In the screenshot below, you can see the Dropbox CFDs:
To buy (or sell) AMD shares, just click on Buy or Sell and decide how much to invest.
Trade.com relies heavily on training, which is necessary to improve the performance of its users. The notions of technical analysis are the basis of a good profit in trading and this Broker has created a very complete trading course, a pdf that can be downloaded for free using the link below:
To open a real account with Trade.com you need at least 100 Euros, an amount lower than the average. However, to get started there is always the totally free and unlimited Demo account.
Dropbox’ business model
Dropbox’s business model is based on a platform that provides a range of cloud services.
As of December 31st, 2019, the service had around 600 million registered users in 180 countries.
In the list below you can read some of the most important data of this company:
- Quotation: NASDAQ (DBX)
- Industry: Cloud storage, file hosting
- Foundation: June 2007
- Founders: Drew Houston, Arash Ferdowsi
- Headquarters: San Francisco, California, United States
- Number of employees: 2323
Is buying Dropbox shares worth it?
The answer is not easy, it is about investments and there is never an absolute certainty in this field.
The analysts of the major investment banks believe the stock is rather undervalued and this leads us to think that buying Dropbox shares could be very convenient. However, it is necessary to choose a good entry point, place the Stop Loss immediately, and have a long-term perspective in order to obtain a noteworthy economic return.
The graph below shows the historical trend of the Dropbox stock, share prices are now close to their lows but are in contrast with the growth in turnover, which this year was remarkable.
Year-over-year estimates forecast growth by around 12.7% compared to the same period a year ago. This rise in the company’s fundamentals should also drag the stock market upwards.
Dropbox’s competitors are some of the giants of the web, huge companies that offer similar services but don’t have the focus on the cloud, one of Dropbox’s main advantages.
Below are the major competitors of the company:
- Palantir Technologies
Dropbox shares: forecast
Given the growth estimates, the forecasts for the Dropbox stock also go in the same direction.
The positive revisions of the estimates reflect the optimism of the analysts about the activity and profitability of the company. The chart below shows the current price of the stock and the strong volatility of the last few months.
For short-term traders, those who do Scalping and Intraday Trading, the volatility of this stock is very beneficial.
Traders who aim for a more substantial profit, on the other hand, can rely on the medium / long-term forecasts of the main international analysts:
- Zacks Investment Research has cut Dropbox from a “buy” rating to a “hold” rating.
- BidaskClub has lowered Dropbox from a “sell” rating to a “strong sell” rating.
- Bank of America downgraded Dropbox from a “buy” rating to a “neutral” rating and lowered the target price for the company from $ 32.00 to $ 25.00.
- Jefferies Financial Group upgraded Dropbox from a “pending” rating to a “buy” rating and raised the target price for the company from $ 22.00 to $ 28.00.
Dropbox shares : Target price
Leading international analysts have posted ratings and pricing targets for Dropbox: Their twelve-month average target price is $ 28.22, expecting to rise by 50.52%.
Out of 11 evaluations that we have examined, there is 1 sales evaluation, 1 pending evaluation, and 9 purchase evaluations for the stock, strengthening a strong consensus to buy.
The analyzes and evaluations on the Dropbox stock lead us to consider this company a good investment in the future, but analysts show medium and long timelines for the recovery of share prices.
Buying Dropbox shares can be very advantageous given the current price of the stock, but considering the global economic situation, dangerous fluctuations could occur in the short term.
If you are a beginner in trading, the advice we can give you is to subscribe to the Broker Demo platforms. In this way, you risk nothing and registration is free. After practicing, you can make the minimum deposit required by the broker of your choice and seriously invest in Dropbox shares.
Here are the official links to access the Demo accounts of the best online brokers for free:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
It depends, in the long term the outlook is good, but in the short term there are large swings in the stock.
Analysts expect Dropbox stock price to rise in the coming months.
The 12-month target price for Dropbox stock is $ 28.22 per share.
The easiest way to buy Dropbox shares safely is to use CFD brokers like eToro, which allow you to trade without paying commissions.