In just a few hours, Dropbox Inc. is going public - ticker symbol DBX.
The real question is... Do we buy it?
I'm always hoping to get in on something early on. Really taking advantage of being in on the ground floor. The big problem here is... What the hell does dropbox have to offer? The answer - not much.
Yes, they boast over 500 million users, but not even 2.5% of them are PAYING users! Although, those paying users are quite mighty, bringing profits up to $1.5 billion! Also, I've heard rumblings about them being smart in their pricing. According to Bloomberg, they're a very difficult company to value - mostly because we think of them all wrong! Yes, they're a "consumer" software company... However, they do quite a bit of business with... businesses. Businesses, "are considered ideal customers for software companies." (Bloomberg)
However, it is still difficult to get over the fact that there is intense competition dropbox is up against. Between Google Drive, Microsoft OneDrive, and Apple - Dropbox is literally fighting some of the largest corporations in the world.
Also, another HUGE one called Atlassian... WTF is Atlassian? Oh well, I digress.
The Motley Fool's Alex Dumortier, CFA (TMFAleph1) performed a quick "No-Moat" filter test for DBX... Long story short - it's a PASS.
Despite my itch to get in on something early on, I don't see DBX being a good buy. I'm not sure if anyone else has opinions they'd like to share on the topic, but I could be completely wrong. One of my biggest fears - I don't want to be stuck with another Snapchat!
