Posted on July 17, 2023
This week’s letter focuses on a company that attached itself to the AI bandwagon, even though that connection is (at present) only peripheral, though expanding, and really doesn’t amount to cutting edge AI at all.
The company is Dropbox (NASDAQ:DBX) and the technology they’re touting amounts to not much more than a search tool for those who use the application.
Yet that’s what it takes to goose the fortunes of your stock these days.
And goose it has.
Public Relations, friends, is waht the stock market is all about.
Not just earnings.
In case you didn’t know…
For those unaware, Dropbox is essentially a cloud storage company that allows co-workers to collaborate on content from the far corners of the globe. They were among the first in that arena, but despite all the initial hype, the shares never really managed to fly as they were intended—
Some analysts are expecting big things from the company and are raising earnings estimates, but our feeling is that the sweetness is already baked in, and there’s no more rise left in the DBX cake.
That said, let’s take a closer look at the numbers…
As the stock was posting new highs.
With kind regards,
Hugh L. O’Haynew