How Dropbox Shares Gained 15% Last Month
Shares of Dropbox (NASDAQ: DBX) rose 14.9% in February 2020, according to data from S&P Global Market Intelligence. The provider of cloud-based file hosting services and other lightweight productivity tools posted a modest earnings surprise last month, but the real meat of that report was found in the company's strategy shift toward a more profitable business model.
Like so many growth stocks, Dropbox has kept a laser-like focus on revenue growth so far. Earnings have been spotty and often negative, but the company's top-line sales are skyrocketing. That will change in short order. In the earnings call, Dropbox CEO Drew Houston promised to focus on "higher productivity and free cash flow in 2020," aiming for positive earnings on a GAAP basis by the end of the year.
Image source: Dropbox.
Source Fool.com
