DBX Should I Buy
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Dropbox Inc (DBX) is not a strong buy at the moment for a beginner investor with a long-term strategy. The technical indicators are bearish, hedge funds are selling heavily, and there are no strong positive catalysts or significant news to drive the stock higher in the short term. While the company's financials show some improvement in net income and EPS, the revenue decline and bearish technicals suggest waiting for a better entry point.
The technical indicators for DBX are bearish. The MACD is negatively expanding, RSI is neutral at 25.906, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below its pivot level of 24.824, with key support at 23.951 and resistance at 25.697.
Analysts maintain an 'Outperform' rating, citing potential AI tailwinds in 2026.
Hedge funds are selling heavily, with a 1076.47% increase in selling activity over the last quarter. Gross margin dropped by 3.36% YoY, and revenue declined by 0.69% YoY. Technical indicators are bearish, and there is no recent positive news or congress trading data.
In Q3 2025, Dropbox's revenue dropped by 0.69% YoY to $634.4M. However, net income increased by 16.03% YoY to $123.8M, and EPS rose by 38.24% YoY to 0.47. Gross margin decreased to 79.78%, down 3.36% YoY.
RBC Capital lowered the price target from $38 to $35 but maintained an 'Outperform' rating. Analysts expect AI adoption to benefit well-positioned companies like Dropbox in 2026, though early guidance remains conservative.
