Should You Buy the Dip in Dropbox Stock?

Value investors should keep an eye on this software company

facebook twitter linkedin

Dropbox, Inc. (NASDAQ:DBX) is an American software company that operates a global collaboration platform. DBX has over 700 million registered users across about 180 countries, providing cloud storage, file synchronization, personal cloud, and client software. The software company has a large market cap, currently valued at $7.4 billion. At last glance, DBX is trading down 1.6% at $20.38.

Dropbox stock has decreased about 30% over the past 12 months and DBX is down 35% since peaking at a 52-week high of $31.47 last November. In addition, the software stock has dropped in price 16% year-to-date and now trades at an intriguing forward price-earnings ratio of 11.86 and a price-sales ratio of 3.37.

Furthermore, Dropbox stock provides some decent fundamentals. DBX maintains a manageable balance sheet with $1.45 billion in cash and $2.32 billion in total debt. Moreover, the software company has grown its annual revenues by 61.7% and has increased its annual net income by $826.8 million since fiscal 2018, generating $2.25 billion in revenue and $342 million in net income over the past 12 months.

Meanwhile, short-term options traders have rarely been more put-biased. This is per Dropbox stock's Schaeffer's put/call open interest ratio (SOIR) of 1.52, which stands in the 81st percentile of annual readings.

Options are affordably priced too, per the shares' Schaeffer's Volatility Index (SVI) of 39%, which ranks in the low 27th percentile of its annual range. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners