Dropbox Shares Gain 35% On First Day of Trading

Rate this post
Dropbox Shares Gain 35% On First Day of Trading

Over the last year, the majority of investor focus in the technology industry has been devoted on blockchain-based businesses and firms tied to the cryptocurrency market. Nonetheless, despite the fact that certain fields of technology have been generally stagnant, a typical IPO has managed to create ripples. Dropbox, Inc. (DBX) went public on Thursday, March 22nd, with an IPO. According to Reuters, it had risen by more than 35% by the conclusion of business on Friday, March 23rd.

From $21 to $28.42 Per Share

The shares sold for $21 per share at the Dropbox IPO. According to the article, this was $1 more than the estimated range of $18 to $20, and the event was many times oversubscribed. The stock started at $29 per share at the start of trade on Friday. DBX rose as high as $31.60 early in the trading day, representing a 50% increase above the IPO price. Shares finished at $28.42 at the conclusion of trading on Friday, representing a gain of more than 35% over the IPO price, even as the broader US stock market fell. The S&P 500 plummeted 1.8% over the same time period, while the Nasdaq sank 2.4%. Dropbox also beat the S&P technology index, which was down by 2.73%.

First Big Tech IPO in Months

It’s been about a year since a “tech unicorn” went public via an IPO of this kind. Snap, Inc. (SNAP) was the most recent in March. The firm that runs the social media network Snapchat is currently selling at a price that is somewhat lower than its IPO price of $17 per share. According to Tom Taulli of InvestorPlace.com, “in the case of Dropbox, investors have an opportunity to obtain exposure to a next-generation software firm with an established business strategy.” The issue is whether Dropbox will end up acting similarly to SNAP, eventually stalling and trading at or below its IPO price.

  Manual Trading Definition

However, for the time being, Dropbox’s recent success may speak well for Spotify, which is due to begin listing on the New York Stock Exchange on April 3rd. In the private market, Spotify is valued at over $19 billion, while Dropbox’s market valuation soared around $13 billion the day after the IPO.

Josh Lerner, an investment banking professor at Harvard Business School, noted “Dropbox is going public at an opportune moment. It has an appealing tale to support its need for finance, and market fundamentals are favorable. However, the climate is competitive as well “He proposed.

Dropbox, which was created in San Francisco 11 years ago, started as a free service for storing huge items such as images and music.

You are looking for information, articles, knowledge about the topic Dropbox Shares Gain 35% On First Day of Trading on internet, you do not find the information you need! Here are the best content compiled and compiled by the achindutemple.org team, along with other related topics such as: Trading.

Similar Posts