How can you buy Dropbox shares?
Dropbox entered the stock market quite recently. This interesting technological company immediately did well and the share price rose enormously. You, too, can invest in the Dropbox share: but what is the best way to do this?
How to buy Dropbox stocks?
When using a long-term strategy, you can also choose to buy Dropbox shares. The stocks will then be added to your portfolio. In this case, it is important to check the financial figures of the company. Also check if the competitive position of the company is strong enough. If you are convinced of the future potential of Dropbox, you can buy the shares and hold on to them for a longer period of time.
One of the most advantageous parties where you can buy stocks is eToro. At eToro, you can buy all known shares without commissions. Click on the button below to open an account free of charge:Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
We advise you to diversify your investments by buying several shares and/or other investment products, so that you can spread your risk. If Dropbox performs poorly, you will not lose all your money.
You can choose to actively trade in Dropbox by using derivatives. When you expect a price increase you can buy the stock. If you expect Dropbox to fall, you can open a short position. In this way you can actively respond to the market and achieve a good result under all market conditions. This method of trading is therefore best suited for active investors.
A good party to actively trade Dropbox CFD shares is Plus500. With Plus500 you can try out the possibilities completely free of charge with a demo. Use the button below to open a free demo:72% of retail CFD accounts lose money.
What is the stock price of Dropbox?
Are you curious how the Dropbox share is performing? The chart below shows you the price at which you can buy and sell Dropbox CFD shares. With the buttons, you can directly open an investment position on the stock.
How does Dropbox earn money?
Dropbox earns money by selling paid memberships. Under the standard account you can use two gigabytes of storage space. For a monthly payment of 10 dollars you can store more than one terabyte of data.
When considering an investment in Dropbox, it is important to keep an eye on whether the company can make a profit. In the years 2018, 2019 and 2020, Dropbox has not yet managed to make a profit. Incidentally, this is normal for technology stocks: the focus is often first on achieving growth.
Opportunities and dangers
The CEO of Dropbox, Drew Houston, indicated in Fortune that they want to focus on software for large companies. This can be an interesting market, as companies are willing to pay money for good software. Moreover, under the influence of the corona pandemic, it is becoming increasingly important to store files online. The company has therefore entered into a partnership with the well-known Zoom Video Communication.
A big risk for buying Dropbox shares is the high competition. The company must continue to distinguish itself from other tech giants offering similar services. It is therefore questionable whether Dropbox manages to remain sufficiently distinctive.
You can buy your first Dropbox shares in three steps. An important first step is to select a broker. At a broker, you can buy and sell shares. It is important to choose a reliable party where you can trade at low rates in the securities you are interested in.
After you have opened an account, it is important to thoroughly investigate the Dropbox company. Only once you are convinced of the future prospects, it is wise to buy the shares.
You then buy the shares using a market or limit order. With a market order, you buy the shares at the current price, while with a limit order, you can set a price at which you buy the shares.
IPO of Dropbox
Dropbox is registered to the well-known technology index Nasdaq. Immediately after launch the share increased in value. After the first day the share had already risen 35% in value. People who invested on the day of the IPO quickly achieved a good result.
Storing data online is still very relevant. This makes it possible for the company to operate in a popular market with good prospects for the future. However, there is also a lot of competition from cloud storage from large parties such as Amazon, Apple, Google and Microsoft.
General information about the company
Dropbox offers storage services through the cloud. The company has hundreds of millions of users. Not only consumers use Dropbox’s storage services, but also many small and large companies.
The company was founded a few years ago by Drew Houston. This top executive of the company said in an interview last year that the annual turnover of Dropbox is more than 1 billion dollars. Dropbox earns money by offering expansion packages for its storage services. You can store your documents for free at Dropbox, but you have to pay if you want more storage space. It is clear that this earning model works well for Dropbox, given the high turnover of the company.