Dropbox Stock Is Dropping Again: Here's Why Now Is a Perfect Time to Buy
Dropbox (NASDAQ: DBX) stock has been stuck in the mud for years. Shares are trading around their 2018 IPO price of $21 per share, even with the overall market up close to 50% in that same timeframe. This underperformance has continued in 2023 with investors pushing the stock down more than 11% after its fourth-quarter earnings announcement on Feb. 16.
However, if we take a look at Dropbox's financial growth since going public, it is a lot stronger than what its stock price returns might suggest. This difference between share price and business performance makes Dropbox dirt cheap at the moment, and this is the perfect time to scoop up some shares for your portfolio.
At a high level, Dropbox's Q4 earnings looked adequate. Revenue grew 5.9% year over year to $598.8 million, even with major foreign currency headwinds. On a currency-neutral basis, revenue grew 9.2% year over year. Moving further down the report, the company's cash flow was solid with free cash flow generation of $181.7 million in the quarter, or a free-cash-flow margin of 30%. No surprises there.
Source Fool.com
