The Best IPOs to Buy for the Rest of 2017: Dropbox
IPO Timetable: First half of 2017 (estimated)
Now that Snap Inc has gone public, what tech unicorn will be the next to go public?
Right now, it’s hard to tell. There’s still a ton of venture capital sloshing around, as evidenced by Airbnb, which recently snagged a cool $1 billion in a funding round. (On a very related note, don’t expect an Airbnb IPO anytime soon.)
But the decision to go public is about more than just money. There are other advantages, such as providing more transparency, allowing employees to cash out of their options and using company stock as currency for mergers and acquisitions.
So what unicorn fits the bill?
Dropbox seems the next likely bet, but it does face a ton of competition from large operators that provide cloud-based file storage systems. This includes the likes of Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT) and Alphabet — well-heeled mega-caps that can buy their way to success.
Still, Dropbox has been quite nimble in this environment. The company surpassed 500 million signups last year, and revenues are expected to hit $1 billion in 2017. Better still, Dropbox should be cash flow-positive.
A key part of Dropbox’s success has been the launch of a business service that allows for secure collaboration. That has garnered about 200,000 customer sign-ups.