Dropbox IPO Just Got $2 More Expensive Per Share

The Dropbox IPO is one of the most talked about offerings that has happened this year thus far, and for good reason. Dropbox is a massive company with a blue chip valuation. Well, that valuation just got a whole lot bigger as the Dropbox IPO just got quite a bit more expensive. Today, we’ll talk about the news, why the increase is actually a pretty good sign for Dropbox, and what you should be watching for ahead.

Dropbox Increases IPO Price

As mentioned above, the latest news that we’ve gotten with regard to the IPO of Dropbox has to do with the price. In recent news stories, we’re seeing news that Dropbox has made the decision to increase the price of its IPO.

Previously, Dropbox announced that it has decided upon a price for its IPO. At the time, the company set the initial IPO price range to be between $16 and $18 per share. This gave the company the expectation of raising approximately $648 million through the offering.

However, on Wednesday, the company announced that it has decided to increase the IPO price. Now, if you want to get in on the IPO, you’re going to apy somewhere between $18 and $20 per Dropbox share. As a result of the increased price per share, the company is now expecting to raise approximately $720 million, just under 10% of the total valuation of the company at $7.8 billion.

Why The Increase In The IPO Price Is Good News For Dropbox

While at first glance, this may not seem like such good news, it’s great news for Dropbox and a very positive sign for the IPO. There are multiple reasons for this:

  • Larger Amount Of Funds Raised – First and foremost, let’s not forget the reason for an IPO in the first place. In general, companies go public in an attempt to raise funds, and a whole lot of them. Even if the IPO price was to stay at the lower initial number, Dropbox would have raised an incredible amount of money. However, with $2 more per share in mind, the company is likely to raise an additional 72 million.
  • Shows Strong Demand – At the end of the day, if Dropbox wasn’t confident that the demand would be strong for its IPO, it wouldn’t go raising prices. After releasing the initial price of between $16 and $18 per share, the company has made the decision to increase the price after just about a week. This suggests that Dropbox has crunched the numbers based on reactions to the initial pricing, deciding that the demand was there for an increase. That’s great news.

What To Watch For Ahead

Moving forward, Dropbox is likely to present several potentially profitable opportunities. After all, it is one of the most talked about IPOs in some time. Adding in the fact that demand is already high enough to warrant a price increase on the shares, makes this an even more exciting even.

With that said, if you’re looking to get involved in the Dropbox IPO, there are a few things you should be watching for. First and foremost, pay attention to the news surrounding the price increase. Soon enough, we should see stories with regard to demand that tell us whether or not this was the right move relatively soon. Also, do some due diligence with regard to the valuation of the company. Is a $7.8 billion valuation really worth it when the company hasn’t produced a penny in profit??? While I can think of several examples where historically, the answer has been yes, that doesn’t mean that that’s the case here. So, before getting involved, make sure to do your research and understand just what you are purchasing when you buy shares.

Checkout Unique Finance and get a bonus from me.

Dropbox IPO Just Got $2 More Expensive Per Share

The Dropbox IPO is one of the most talked about offerings that has happened this year thus far, and for good reason. Dropbox is a massive company with a blue chip valuation. Well, that valuation just got a whole lot bigger as the Dropbox IPO just got quite a bit more expensive. Today, we’ll talk about the news, why the increase is actually a pretty good sign for Dropbox, and what you should be watching for ahead.

Dropbox Increases IPO Price

As mentioned above, the latest news that we’ve gotten with regard to the IPO of Dropbox has to do with the price. In recent news stories, we’re seeing news that Dropbox has made the decision to increase the price of its IPO.

Previously, Dropbox announced that it has decided upon a price for its IPO. At the time, the company set the initial IPO price range to be between $16 and $18 per share. This gave the company the expectation of raising approximately $648 million through the offering.

However, on Wednesday, the company announced that it has decided to increase the IPO price. Now, if you want to get in on the IPO, you’re going to apy somewhere between $18 and $20 per Dropbox share. As a result of the increased price per share, the company is now expecting to raise approximately $720 million, just under 10% of the total valuation of the company at $7.8 billion.

Why The Increase In The IPO Price Is Good News For Dropbox

While at first glance, this may not seem like such good news, it’s great news for Dropbox and a very positive sign for the IPO. There are multiple reasons for this:

  • Larger Amount Of Funds Raised – First and foremost, let’s not forget the reason for an IPO in the first place. In general, companies go public in an attempt to raise funds, and a whole lot of them. Even if the IPO price was to stay at the lower initial number, Dropbox would have raised an incredible amount of money. However, with $2 more per share in mind, the company is likely to raise an additional 72 million.
  • Shows Strong Demand – At the end of the day, if Dropbox wasn’t confident that the demand would be strong for its IPO, it wouldn’t go raising prices. After releasing the initial price of between $16 and $18 per share, the company has made the decision to increase the price after just about a week. This suggests that Dropbox has crunched the numbers based on reactions to the initial pricing, deciding that the demand was there for an increase. That’s great news.

What To Watch For Ahead

Moving forward, Dropbox is likely to present several potentially profitable opportunities. After all, it is one of the most talked about IPOs in some time. Adding in the fact that demand is already high enough to warrant a price increase on the shares, makes this an even more exciting even.

With that said, if you’re looking to get involved in the Dropbox IPO, there are a few things you should be watching for. First and foremost, pay attention to the news surrounding the price increase. Soon enough, we should see stories with regard to demand that tell us whether or not this was the right move relatively soon. Also, do some due diligence with regard to the valuation of the company. Is a $7.8 billion valuation really worth it when the company hasn’t produced a penny in profit??? While I can think of several examples where historically, the answer has been yes, that doesn’t mean that that’s the case here. So, before getting involved, make sure to do your research and understand just what you are purchasing when you buy shares.

Checkout Unique Finance and get a bonus from me.

Social Trading the New Way to Trade Stocks

Worldwide Global Unity Social Gathering Community Concept

Become a follower

If you like how somebody trades and find that helpful, you can choose to follow him or her on social trading platforms. You will be able to see their moves and activities at all times. Hence, you get a chance to learn from experts. You can even ask for guidance if you don’t understand something.

Always follow traders, who are rated positively by the community. This allows you to learn rapidly. However, as these communities have thousands of members, your questions will not be answered all the time. At least they share information, which is more than useful.

Private messaging

You are connected to millions of users, from whom you can learn a lot about trading. If you follow a trader who appears to have an erratic trading behavior, you’re entitled to ask questions. You can employ the same charts they read and predict price movements. Keep track of your progress to see if your judgement is better in comparison to the traders you follow.

Information access

Social trading offers the best environment for traders to get better, especially beginners. It would take a lot of knowledge and experience to acquire the significant and synthesized info and data delivered by these platforms. Due to the constant flow of information, social trading platforms allow traders to start trading and confidently make financial decisions with all the right moves.

Help other traders

Experienced and successful traders can help others in the community. Sharing on social trading platforms means valuable information delivered for the benefit of  interested traders. It’s a way to   give back to your community and help others too.

Social trading for beginners

  • Pick popular investors
  • Follow, learn, and even try their trading methods
  • Monitor the popular investors’ ongoing performance
  • Interact with veteran traders for useful tips and suggestions
  • Control your trading emotions

 

Gaining More Control Over your Investments

Investors can gain recognition as successful traders by joining these social trading sites. You may have felt before that social trading sites can be stiff and boring. Absolutely not, this is not the case here. It is a  very alive community with common goals: helping one another to  trade with excitement and efficiency. It does not matter if you desire to share trading experience or learn trading strategies, this is the place for anyone who likes trading.

 

Checkout Unique Finance and get a bonus from me.