Dropbox stock falls 7% after earnings easily beat expectations, COO steps down
Dropbox Inc. reported better-than-expected quarterly earnings and revenue late Thursday, as the cloud-storage company grew its paying customer base and earned more from each user than Wall Street projected, but shares still dropped.
Dropbox stock DBX, -9.82% were down 7.7% in early afternoon trading Friday, after the San Francisco-based company’s second-quarter earnings report, which included news that Chief Operating Officer Dennis Woodside was stepping down.
Dropbox also disclosed that a post-IPO lockup on shares would expire earlier than previously planned.
Dropbox Shares Tank on COO Departure
Despite better-than-expected earnings results, Dropbox Inc. (DBX) shares were down 7.3% early in Friday’s session after the company announced that its chief operating officer is leaving.
Dropbox reported 11.9 million paying subscribers at the end of June. That’s a 20% increase from the second quarter last year, and above the 11.7 million subscribers Wall Street expected.
Revenue increased 27% year over year to $339.2 million. Non-GAAP income was $0.11 per share, up from $0.06 per share a year prior.
Today's Trade of the Day | 8-13-18
Since June, LULU Lululemon struggled to remain above the $128 level. Friday's close happened when the stock market plunged lower on bad news. Relative strength plays give excellent signals for initiating new trades. I'm game planning a new swing trade long, but using a $131 buy stop to trigger the entry. Stop loss on a close below $128, initial profit target comes in at $143.
Stocks to Trade | Monday Edition 8-13-18
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