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4 min read 

Dropbox (DBX), a well-known San Francisco-based company that operates in the spheres of cloud storage and file synchronization, has finally conducted an initial public offering. The IPO, that was held on the 23rd of March, became the biggest tech IPO since Snapchat. Following this remarkable event Dropbox has made its way to IQ Option. You can trade this company in the CFD section of the platform.

Initially priced at $21, company shares witnessed an immediate increase in value, going up 36%. Who knows how much more the company will grow in the weeks and months to come? Dropbox Inc. is currently estimated to be worth $11 billion. Not bad for an enterprise that came into being as a small startup only 11 years ago.

Dropbox Makes Its Way to IQ Option Following Successful IPO
DBX post-IPO share price

What to expect?

In the future the company may find it hard battling heavyweight competitors, that include Google and Microsoft. Dropbox has around 11 million subscribers, of whom only 3.3 million (30%) use business accounts. Private clients are more eager to switch their cloud storage provider if necessary. Should a new technology/product be offered by any of the rivals, Dropbox can lose a substantial portion of its client base.

Cloud storage, an integral part of the company’s business model, is becoming increasingly inexpensive, thus compromising its primary source of income. It is also worth noticing that during all these years Dropbox has not yet turned profit. However, experts still feel optimistic.

Right now, traders receive a mix of positive and negative signals that will shape the price action in the foreseeable future. DBX shares first climbed to $31, then losing 8% of value only to reach $30 once again several days later.

How to trade?

Trading Dropbox with IQ Option is easy. Simply do the following:

  • Click Open New Asset (the plus sign) at the top of the screen and choose ‘CFD’,
  • Find the company in the list of available assets,
  • ‘Buy’ if you expect the company to grow and ‘Sell’ if the depreciate is coming.
Dropbox Makes Its Way to IQ Option Following Successful IPO
Finding Dropbox in the list of available instruments

No matter what the future holds for Dropbox, IQ Option traders can still capitalize on its stock. Both positive and negative movements of DBX shares pose prominent trading opportunities. Actually, both strategies can be used consecutively depending on the market behavior. When a trader believes that the company is about to make a positive announcement, introduce a new product or disclose a better than expected earnings reports, he should consider buying. When, on the contrary, the company is going through a period of depression, selling can be an option.

Trade Dropbox