Dropbox and Box compete with four much larger competitors, who provide more or less the same service: Apple, Amazon, Microsoft, and Google.Įach of those four companies have large balance sheets over which to amortize the cost of providing cloud storage services. The problem with this business model is that the service has become commoditized. Thus, investors don’t like Dropbox’s (or Box’s) chances.ĭropbox and Box provide cloud-based storage services to individuals, enterprises, governments, etc.
AMZN, MSFT, AAPL have much larger balance sheets over which to amortize the cost of providing such a service. The answer I gave is a pretty straightforward, albeit concise, one:ĭropbox offers a commodity-cloud based storage-and it competes with Amazon, Microsoft, and Apple, to say nothing of the similarly named Box, in providing that service. I was asked on Quora why Dropbox’s stock is trading at a relatively low price (around $30 as of this writing), in spite of it having decent earnings.
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