William Blair analyst Jason Ader has maintained their neutral stance on DBX stock, giving a Hold rating on July 31.
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Jason Ader has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Dropbox’s recent performance. The company reported strong second-quarter results, surpassing revenue and non-GAAP EPS expectations, and showing a significant improvement in operating margins. These positive outcomes were attributed to cost-saving measures, such as workforce reductions and strategic shifts in marketing expenses, as well as disciplined hiring practices.
Despite these achievements, Ader remains cautious due to ongoing challenges, such as a decline in the subscriber base and the need for successful execution in monetizing Dash, Dropbox’s long-term growth strategy. The company’s modest guidance raise, adjusted for currency, and the timing of certain expenses also contribute to the Hold rating. Ader suggests that while Dropbox’s valuation is low, the company is still a ‘wait-and-see’ story, requiring further evidence of sustained growth and stability in its core operations.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $30.00 price target.