17.80 0.00 (0.00%)
After hours: 4:32PM EDT
|Bid||17.80 x 4000|
|Ask||17.96 x 800|
|Day's Range||17.60 - 18.00|
|52 Week Range||17.20 - 28.80|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 7, 2019 - Aug 12, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||30.58|
(Bloomberg) -- WeWork’s IPO prospectus lacks the information needed to create a financial model of the company, according to an analyst who specializes in new listings.The We Co., which is expected to raise about $3.5 billion in what would be 2019’s second-biggest initial public offering, must have put in a great effort to conceal the unit economics underlying the coworking space provider, said Triton Research Inc. Chief Executive Officer Rett Wallace.“The prospectus is a masterpiece of obfuscation,” he said in an interview. “If the underlying facts were positive, why would a company go to so much trouble to prevent you from understanding them?”Using what it calls an obfuscation index as one component of its ratings, Triton has built a strong track record predicting the winners and losers among technology IPOs. Since January 2018, listings that won an above-average score from Triton have risen about 92% from their offering prices, nearly triple the return of those scoring below average.IPOs with the highest Triton scores include standouts Elastic NV, Smartsheet Inc. and Anaplan Inc., while post-listing duds such as Sonos Inc., Dropbox Inc. and Lyft Inc. rank among the low scorers.Triton sees high levels of obfuscation in WeWork’s filing. For example, the company stops counting sales and marketing expenses at a given location once it’s been open for two years -- but the spending doesn’t actually stop after that. Instead, it counts as an operating expense, Triton said.A representative for New York-based WeWork declined to comment.Opening DatesWeWork’s filing doesn’t disclose the dates of when its locations opened or when the spending at a given location will switch into the operating expense bucket, according to Wallace. Like some government agencies, WeWork labels some compensation as investments.“When you make it impossible for people to have data-driven conviction, then everything is just sentiment,” Wallace said. “Sentiment can come and go, especially in a volatile tape like this.”Read more: WeWork IPO May Polarize Wall Street Into Warring Camps, MKM SaysThe lack of disclosure becomes even more apparent when contrasted with other IPO filings that are more direct, he added.“When companies fight you on understanding the basic proposition of the mousetrap, it’s always bad. People who have good mouse traps say, ‘This is the thing: You put the cheese in, the trap is designed to never break your thumb, and it catches mice nine times out of ten.’”Read more: WeWork IPO Shows It’s the Most Magical Unicorn: Shira OvideTo contact the reporter on this story: Drew Singer in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investment company Johns Hopkins University (Current Portfolio) buys Black Stone Minerals LP, Dropbox Inc during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Johns Hopkins University. Continue reading...
Twenty-one "unicorns" have emerged from the Mountain View-based startup accelerator over its 15-year history and more than 130 of its alumni are figured to be worth over $100 million.
Investors are always searching for the stocks that offer the most compelling investment opportunities. More often than not, these are the stocks that go above and beyond in terms of growth prospects. While looking for these kinds of investments, we turned to the TipRanks stock screener to zero in on three stocks garnering praise from the Street. We filtered the results to show stocks with “strong buy” consensus ratings, narrowing our search down to the stocks with over 100% upside potential from the current share price.Let’s take a closer look at these 3 ‘Strong Buy’ stocks that analysts believe could double in 2020. Dropbox (DBX) - 112% Upside.The file hosting service just got a vote of confidence from investment banking firm JMP Securities following a mixed Q2 earnings release that sent shares tumbling. While the company's revenue reached $401.5 million, up 18% year-over-year, investors throw in the towel on the stock in light of disappointing billings and deferred revenue.JMP's Patrick Walravens, a five-star analyst according to TipRanks, stated that he believes the results suggest the company is stabilizing thanks to new pricing and product offerings. As a result, Walravens reiterated a Buy rating on DBX stock, with $37 price target, which implies 112% upside potential.While the company’s $410.4 million in billings were widely considered to be disappointing, Walravens points out that a the company's shift in strategy can potentially drive further growth. DBX announced in June that it’s launching a new desktop app for Windows and Mac. Not to mention the company has made substantial efforts to expand its reach through new partnerships as well as its HelloSign acquisition.“We like how Dropbox is working to do a better job serving the needs of its more than 500M registered users and monetizing those users, and our sense is that the tone of business has improved internally as a result,” the analyst explained.Walravens is clearly not the only analyst with an optimistic outlook on the software company, as TipRanks analytics indicate that DBX has a ‘Strong Buy’ analyst consensus. The stock has a $30 average price target, boasting 74% upside potential. (See DBX’s price targets and analyst ratings on TipRanks) Iteris (ITI) - 120% UpsideIteris investors had reason to be excited after the applied informatics company posted a Q1 EPS beat earlier this month. ITI has also placed a renewed focus on its core transportation business, with this becoming especially clear after its $10.7 million Albeck Gerken acquisition. The company can now utilize Albeck’s significant capabilities in transportation systems management and operations and expand its reach in the Midwest and Mid-Atlantic segments of the market.Joseph Osha, a 3-star analyst, believes that ITI looks poised to achieve organic growth for the current fiscal year. Osha does point out that while Q1 revenues were flat year-over-year, he expects the its core transportation business to drive continuous upside. More growth could even come if the company limits its AgTech exposure, except to the extent that technology in the division supports the company’s transportation efforts.As a result, Osha reiterated a Buy rating on ITI stock, while raising the price target from $10 to $11, which represents nearly 120% upside from current levels. (To watch Osha's track record, click here) “We like ITI’s substantial relationship with HERE Technologies, one of the larger competitors in location and mapping data, which has raised more than $3 billion in equity capital to date. We think that 10% plus may be a sustainable rate of growth for ITI’s transportation businesses, and more generally we believe that ITI’s competitive positioning is improving,” Osha added.All in all, Iteris stock looks like a very compelling investing opportunity, as TipRanks analytics showcasing the stock as a Strong Buy. With an average price target of $9.17, analysts are predicting massive upside potential of 83% for the stock. In total, Iteris stock has received 3 'buy' ratings in the last three months. (See ITI’s price targets and analyst ratings on TipRanks) The Lovesac Company (LOVE) - 170% UpsideThe last stock on our list is a furniture maker specializing in a patented modular furniture system called Sactionals. The stock hasn’t gotten love from investors recently as shares have plummeted about 60% since May's highs.The trouble with LOVE stock can be attributed to comments made by management in June that the increase in tariffs could adversely impact adjusted EBITDA. However, LOVE has made efforts to alleviate some of the impacts of tariffs by shifting production to Vietnam, negotiating for factory costing support and considering subtle price increases via changes to promotional trigger limits.Canadian investing firm Canaccord Genuity has recently hosted meetings with members of LOVE’s management team to try and clear up some of this confusion. Analyst Camilo Lyon noted that the tone of the meetings was positive as the company expressed that it had made substantial efforts in maintaining its continued long-term growth and market share gains. As part of these efforts, LOVE is expected to release a low-tech Sactional extension similar to the roll arm and teased a high-tech product introduction next year in collaboration with “a well-known US tech company”.Based on LOVE’s upward trajectory, the analyst reiterated his Buy rating on LOVE with $49 price target, which suggests the stock could surge nearly 170% over the next twelve months. (To watch Lyon's track record, click here)“Aside from the near-term noise of tariffs, LOVE’s growth story remains intact. Given the brand’s paltry brand awareness that hovers around 2%, coupled with its disruptive, patent-protected modular Sactional designs, we see multiple years of solid market share gains ahead,” Lyon added.All in all, most of the Street have not given up on the company just yet, as TipRanks analytics showcase LOVE as a Strong Buy. Out of 3 analysts polled in the last 3 months, all 3 are bullish on LOVE stock. With a potential upside of 116%, the stock’s consensus target price stands at $39. (See LOVE’s price targets and analyst ratings on TipRanks)
Stanford University owns shares of Uber, CrowdStrike, and Pinterest. It also acquired a stake in biotech stock Atreca in the second quarter and slashed its investment in Dropbox.
Half of the 34 businesses from the region that debuted on Wall Street in 2018 are now trading below their initial offering price, and three have experienced bigger percentage drops than Bloom.
Investors shaken by the stock market's pullback in August should be on the alert for even steeper declines ahead for six stocks with a range of vulnerabilities, including PayPal Holdings Inc. (PYPL), Dropbox Inc. (DBX), Molson Coors Brewing Company (TAP), MSG Network Inc. (MSGN), Domino’s Pizza Inc. (DPZ), and Dish Network Corp. (DISH). For its part, MSG Network's big challenge is loss of subscribers.
Conflicting trade reports made for a back-and-forth session in the stock market. Ultimately, equities were slightly lower heading into the weekend, but given where we came from on Monday, it wasn't a bad showing from the bulls this week. Here are some top stock trades to consider for next week. Top Stock Trades for Tomorrow No. 1: J.C. PenneyWith shares of J.C. Penney (NYSE:JCP) trading under $1, it's now on notice from the NYSE. Will shares be delisted? It's a lengthy process, but it could happen now that the stock is deep in the doldrums.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Shares are now resting on the lows near 60 cents. While the downside is obviously limited -- to $0 -- there are many far-less-speculative names for investors to trade. A rebound to 80 cents is possible, but so is a decline to new lows.My plan with JCP stock? Don't gamble on it. Top Stock Trades for Tomorrow No. 2: The Trade Desk (TTD)Shares of The Trade Desk (NASDAQ:TTD) were up several percent at one point on Friday, but are now just above flat for the session. I was lucky enough to snag some at $250 in after-hours trading, even though technically speaking, it was breaking key support at that point.But after-hours trading can be extra volatile, throwing technicals to the sidelines amid the chaos. I happen to really like the TTD story, so it was less about the technicals and more about the fundamentals.Amid regular trading hours, though, TTD remains above the $255 breakout and continues its trend higher. Shares bounced right off of uptrend resistance on Friday, as it hit new highs. For TTD to remain healthy, it needs to hold uptrend support and its 50-day moving average.$300 isn't out of the question if bulls grab control over the overall market. Top Stock Trades for Tomorrow No. 3: Dropbox (DBX)Dropbox (NASDAQ:DBX) stock is plunging 14% on the day to new lows after reporting earnings. The setup is not pretty.Aggressive bulls can try a long position against the $18.50 low and look for a possible rebound up to $21. I would be surprised if bears didn't sell into that area should it rebound that far. Below $18.50 and more lows are possible.I don't like to trade the first day of a big plunge. Instead, I'd rather see it hold as support before getting long. Breaking the $18.50 low and reclaiming it in the same session would be encouraging. Top Stock Trades for Tomorrow No. 4: Yelp (Yelp)Yelp (NASDAQ:YELP) is jumping on better-than-expected earnings on Friday, climbing more than 8%. Shares initially climbed above the 61.8% retracement at $38.18, but failed to hold that mark throughout the session.Over $36.22 is good though, as it keeps Yelp over short-term resistance and its major moving averages. On a pullback, investors can buy Yelp should support hold strong.On a move over the 61.8%, look for a push over Friday's highs. If Yelp can get above it, $41 is the next upside target. Top Stock Trades for Tomorrow No. 5: PVH Corp (PVH)PVH Corp (NYSE:PVH) is hitting new 52-week lows as well, down more than 4% Friday.Now below $85, the $65 to $70 zone is certainly possible. See if this area holds up as support should PVH stock fall that far. On a rebound, see if $85 acts as resistance or if PVH can reclaim it.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long TTD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post 5 Top Stock Trades for Monday: JCP, DBX, TTD, YELP appeared first on InvestorPlace.
(Bloomberg) -- Dropbox Inc. tumbled to an all-time low on Friday, extending a recent downtrend as the software company’s latest results failed to convince investors of the bullish narrative that analysts continue to push.The stock dropped as much as 14% on volume that was more than three times the daily average, and the move erased more than $1 billion from the company’s valuation. Friday’s decline not only marked the biggest one-day percentage loss in the company’s history -- it went public in March 2018 -- but it took shares to record intraday lows.Shares have been trending lower for weeks; Dropbox has only risen in three of the past 19 trading days, according to Bloomberg data, and it is down about 30% from a July peak.A weaker-than-expected read on billings was seen as the primary catalyst behind the decline, although analysts remain positive on the company, the decline notwithstanding.“It’s frustrating to face nearly ceaseless negativity and middling performance of the stock,” wrote Richard Davis, an analyst at Canaccord Genuity.“We haven’t broken the bears yet,” he added, but “we’re willing to stick with this name.” Among other factors, Davis cited a product redesign as something that could lead to long-term outperformance.Eleven analysts have the equivalent of a buy rating on the stock, compared with three firms with a hold rating and two advocating selling the stock. The average price target is a little under $30, or 60% above current levels.Here’s what analysts are saying about the results:Canaccord Genuity, Richard Davis“Every relevant forward-looking metric that matters was good for this print and guide.”The product redesign is focused on giving users a good experience, which Davis sees as a long-term tailwind. “It is more likely than not that Dropbox will be able to deliver long-term sustainable growth and, eventually, 30%+ [free cash flow] margins.”Buy rating, $35 price target.Jefferies, John DiFucciThis was a “solid” quarter, with revenue slightly ahead of expectations, “though billings was a bit shy due to a higher mix of monthly invoicing.”The product redesign integrates the service with Slack, Zoom, and Atlassian, and “a unified workspace approach should enable DBX to cross-sell additional products.”Buy rating, $32 price target.RBC Capital Markets, Mark Mahaney“Organic fundamentals remain very much intact,” although “fundamental trends were modestly less robust.” Expects margins to expand in the second half of the year.A product redesign “could lead to a stickier product in the workplace, which can drive robust revenue and fundamental growth trends going forward.”Outperform rating, $32 price target.Nomura Instinet, Christopher EberleThe results were “somewhat underwhelming,” and there “continues to be what we believe is a miscommunication between management and investors.”Raises earnings expectations for 2019 and 2020, but trims price target by $1 to $24. Neutral rating.KeyBanc Capital Markets, Rob OwensThe company’s “rapid innovation cadence and continuous improvement to Company-owned infrastructure justify further upside.”Overweight rating, $35 price target.Bernstein, Zane ChraneNotes a “strong beat” on net paid user additions, although average revenue per user fell short of expectations.Cites higher customer acquisition costs as a concern.Underperform, $19 price target.(Updates stock to show record low, adds KeyBanc commentary.)To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Will Daley, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Although Dropbox Inc (NASDAQ: DBX ) reported mixed results for the second quarter, the stock has catalysts ahead, according to Bank of America Merrill Lynch. The Analyst Justin Post maintained a Buy rating ...
Dropbox (DBX) shares have fallen 13.0% in early market trading on Friday. Dropbox announced its second-quarter results after market close on Thursday.
Dropbox Inc.’s management may be taking a rosier view of the months ahead, but the company’s latest results didn’t do much to sell investors on that narrative.
Dropbox Inc. shares jumped 7% in the extended session Thursday after the file-hosting service reported second-quarter financial results that topped Wall Street estimates. The company reported net income of $42 million in the quarter, or 10 cents a share. Revenue rose 18% year-over-year to $401.5 million. Dropbox also reported 13.6 million paying users, up 12% from the same quarter a year ago. Analysts surveyed by FactSet had estimated EPS of 9 cents a share on revenue of $401 million. Dropbox stock is up 5% this year, while the S&P 500 index has gained 17%.
(Bloomberg Opinion) -- Lyft Inc.’s rocky road as a public company should be a warning for other highfliers hoping to hit it off with stock investors. It is ugly out there for the elite startup superstars. Lyft said in its second-quarter earnings report on Wednesday that the rate of revenue growth slowed less than it had forecast and that losses weren’t as bad as investors expected. Still, even the company’s slightly raised forecast for 2019 revenue growth of as much as 62% would represent a comedown from last year, when Lyft’s revenue was doubling or more year-over-year. Both Lyft and rival Uber Technologies Inc. are posting slowing growth at the same time they’re telling investors that they’re just barely scratching the surface of their potential. Lyft shares were initially higher in after-hours trading following the release of the earnings report but then retreated.(1)Questions about Lyft’s slowing growth, high losses and the general viability of on-demand transportation have pushed its share price far below the $72 at which the company sold stock in its initial public offering in March. Shares of Uber have also been underwater since its IPO. And those two are far from alone in their misery.For all the hype about the post-2008 class of high-profile, highly valued and highly disruptive technology startups, many of the biggest “unicorns” that have gone public so far have been stinking up public stock markets like a skunk waddling into a picnic. In addition to the decline in shares of Uber and Lyft, the prices for Snapchat, Dropbox Inc., Spotify Technology SA and China’s Xiaomi Corp. and Meituan Dianping are also below their IPO levels. For many of the top tier of richly valued young technology companies, the early message from public investors has been clear: If the company’s business model is a string of question marks and there are few public precedents and high losses, stock buyers are not greeting them with open arms. The lackluster performance of the unicorn elites isn’t a great setup for WeWork Cos., Postmates Inc., Didi Chuxing Inc. and others in the crop of still-private startup elite edging to go public soon, with even-bigger-than-Uber-sized doubts about their viability and wild valuations. Many more richly valued startups remain private, so it’s too soon to call the elite unicorn crop a success or failure. But if the top-flight startups are being greeted with skepticism in the midst of an unprecedented decade-long bull market for U.S. stocks, what happens when and if market conditions deteriorate? There are notable exceptions to the public investor shunning of unicorns. Investors are crazy in love with young tech companies that sell software or other products to businesses.(2) The tier of tech startups below the richly valued elites such as Uber — think Zoom Video and Stitch Fix Inc. — have typically fared better than many of the superstars. Pinterest Inc., the online scrapbook, has a familiar advertising-based business model, seems to be managing itself well and has a share price that reflects hopes rather than fears. (A familiar business model hasn’t helped the less competently managed Snap Inc. Even after a wild run-up this year, Snap shares are trading below the price at which the company went public in early 2017.) Even with the declines, there probably aren’t many regrets among the early backers of the elite unicorns. Investors who bought shares of companies such as Lyft and Snap early in their lives have made a fortune. Even stock buyers who bought at significantly higher prices soon before the IPO may feel fine about the investments because they were adding to stakes built earlier or they were making relatively small starter investments for giant investment funds.(3)This underscores why the last decade of startup investing has been so odd. It has been economically rational for investors to pour money into young companies and prod them to grow as big and fast as possible. Even when those startups aren’t home runs if they become public companies, those early backers have done fine, or far more than fine. There are few losers, then. The early backers of elite startups are in the black. Buyers of public stocks can shun the young companies if they are too speculative once they go public. It’s all good — except for the startups themselves, perhaps. They are the ones under the most pressure to figure out how to thrive far into the future. (1) Investors seemed a bit spooked by the company's early end to restrictions on insiders to sell Lyft stock. The company's shares are heavily shorted, which tends to exacerbate stock movements.(2) Slack Technologies Inc. may be trading below its first stock sale in its non-IPO earlier this year, but it has generally been greeted warmly and its stock trades at a rich multiple.(3) Some of the unicorns are still underwater compared with share sales from years ago. Dropbox's per-share price now is lower than private purchase of company shares from 2014. Uber's stock is about even with the the level of 2015 share sales. Snap stock price isn't much higher than private share transactions two and a half years ago.To contact the author of this story: Shira Ovide at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.