Dropbox (DBX) stores files in the cloud, and it charges for storage that Microsoft (MSFT) and Alphabet (GOOGL) increasingly fold into bundles people already pay for.
Our consumer demand data on Dropbox is flat versus a year ago, yet the stock trades near the top of its one-year range.
Dropbox grew revenue less than 1% to $631.5 million in the second quarter it reported last week, and it added about 96,000 paying users, a third straight quarter of small gains. Management is pitching its Dash AI search tool as the next growth driver, with a wider rollout due in the second half of the year.
We averaged a 26% gain on past Dropbox short calls, one of our most profitable short signal. It goes back on our short list.