Bull Notes, Earnings Beat Can't Save Sliding Dropbox Stock

A C-suite shakeup could be weighing on DBX

Deputy Editor
Aug 7, 2020 at 10:08 AM
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The shares of file storage and sharing company Dropbox Inc (NASDAQ:DBX) are down 6.5% to trade at $21.75 this morning, despite the company's second-quarter earnings and revenue topping Wall Street forecasts. Perhaps weighing on the stock instead is a C-suite shakeup, where the company's CFO Ajay Vashee announced his resignation.

Nevertheless, two bull notes were dished out by J.P. Morgan Securities and Citigroup, with the latter hiking their price target to $32 from $27. Coming into today, analysts were pretty optimistic on DBX. Of the eight brokerages in coverage, five sported a "strong buy." Plus, the 12-month consensus target price of $27.7 is a 19% premium to last night's close. 

Despite today's lackluster price action, Dropbox stock still boasts an impressive 20% year-to-date lead. Plus, support has emerged at its 100-day moving average, a trendline that DBX has managed to capture pullbacks in the last four months.

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