Dropbox shares soar in biggest tech IPO debut since Snap

REUTERS  Thomas White  Illustration

REUTERS Thomas White Illustration

The stock, listed as "DBX" on the Nasdaq, opened just under $29 and traded as high as $31.60 in the early go.

It had fallen back though shortly after 2 pm to $29.33 a share, a gain of around 39.7 percent from the IPO price.

Its first day success came even amid a broader market sell-off, one that's hit the tech sector especially hard. The S&P 500 slid 1.8 percent while Nasdaq dropped 2.4 percent, adding to losses of more than 2 percent each on Thursday.

Houston, 35, already a billionaire ahead of the initial public offering, saw his fortune swell US$760 million to $2.6 billion as Dropbox shares advanced 43 per cent to US$30 at 12:58 p.m.in NY, and earlier climbed as high as US$31.60.

(NASDAQ: AAPL). It will be hard for Dropbox because many companies already have millions more in paying users including larger funds to enhance its technology.

Like Snap, Dropbox warned prospective investors that it may never be profitable.

Dropbox Inc.'s warm welcome from the market has minted the startup's second billionaire.

At the time, the pricing put the company's valuation at $8.2 billion, $1.8 billion under the valuation the company received after a funding round in 2014.

Streaming music leader Spotify Technology SA is scheduled to do a direct listing of shares on the New York Stock Exchange on April 3.

Dropbox surged by as much as 44% in its trading debut on Friday, marking a strong start to the most prominent tech initial public offering so far in 2018. "It has an attractive story to justify its need for financing and the market dynamics are good", said Josh Lerner, professor of Investment Banking at Harvard Business School. That job developing your brand name and also constructing up worth, it's lastly time for the market to choose just what your firm is really worth.

The cloud storage service has many large competitors such as Alphabet's (NASDAQ: GOOGL) Google and Apple Inc. Now that it is a public company, it is expected that Dropbox will be pressured to start turning a profit. Its net loss almost halved from $210.2 million in 2016.

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