Why Dropbox Shares Fell 24% Last Month
Shares of Dropbox (NASDAQ: DBX) fell 24% in August, according to data from S&P Global Market Intelligence. The provider of cloud-based storage and data management tools posted encouraging second-quarter results last month, but weak billings pointed to slower growth in the next couple of quarters. The stock closed nearly 13% lower the next day.
Dropbox's second-quarter sales rose 18% year over year, stopping at $402 million. Adjusted earnings landed at $0.10 per share, 9% below the year-ago quarter's $0.11 per share. Your average analyst had been looking for earnings near $0.08 per share on sales of approximately $401 million, so Dropbox edged out the analyst consensus on both of these headline-grabbing metrics.
But order billings and deferred revenue came in significantly below analyst expectations. Those are bad signs for its near-term revenue growth, causing some investors to reduce their holdings in a hurry.
Source Fool.com
