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DROPBOX STOCKS PLUNGE ON DISAPPOINTING GUIDANCE - Capital Street FX
Dropbox Inc. is currently trading at 23.29-lower by 8.99% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 6.6%. The stock has continued falling after the opening bell.
Dropbox shares fell after the tech company issued guidance for the first quarter and all of 2019 on Thursday. The company expects $379 million to $382 million in revenue for the first quarter. The consensus estimates for revenue was $377 million. For the full year, the tech company forecasts $1.627 billion to $1.642 billion in revenue; while the markets were expecting $1.60 billion.
Operating margins, however, were below the market expectations. The company expects 7% to 8%, excluding certain items, in the first quarter, while the consensus estimate was 12.1% for the quarter.
The company generated EPS (excluding certain items) of 10 cents for the fourth quarter. The EPS was above the market expectation of 8 cents. The company brought in $375.9 million in revenue for the fourth quarter. The revenue was above the consensus estimates of $370 million.
On the technical front, the current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards. The RSI is currently at 45.93% and suggests that the market can move in the downward direction.
TRADE SUGGESTION- LIMIT SELL AT 23.40 TAKE PROFIT AT 22.80 STOP LOSS AT 23.70