Please ensure Javascript is enabled for purposes of website accessibility

Tech Stocks This Week: Drobox Files for IPO, HPE Stock Jumps, and More

By Daniel Sparks - Feb 24, 2018 at 7:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Dropbox, Hewlett Packard Enterprise, and stole the show this week.

Last week included some interesting stories in tech, but three stood out:

  1. Dropbox, Inc. filed an S-1 prospectus with the Securities and Exchange Commission, highlighting its intent to go public.
  2. Hewlett-Packard Enterprise (HPE -0.90%) crushed expectations for its first quarter, sending its shares more than 10% higher on Friday.
  3. (AMZN -2.65%) finished the week at a new high of $1,500 for the first time, putting the spotlight on the company's huge growth in revenue and earnings.
A diagram showing laptops connected to a cloud

Image source: Getty Images.

Dropbox is going public

In what is expected to be the largest tech IPO since Snap went public just over a year ago, Dropbox filed an S-1 prospectus, highlighting the company's plans to go public and providing insight into the company's financials.

The S-1 prospectus showed a fast-growing company that's still losing money. But Dropbox's losses are narrowing quickly.






$1.1 billion

$845 million

$604 million

Net loss




Data source: Dropbox's S-1 filing.

Between 2015 and 2017, annual revenue has risen from $604 million to $1.1 billion, while net losses per share have narrowed from $1.18 to $0.38.

Other notable facts from the S-1 filing:

  • Dropbox has 500 million registered users, but only 11 million are paying.
  • Dropbox has expanded to more than 180 countries.
  • Users have uploaded over 400 billion pieces of content to Dropbox.

Dropbox plans to trade under the ticker DBX and could begin trading as early as next month. The company is expected to target a valuation of about $7 billion to $8 billion, according to The Wall Street Journal.

HPE stock soars

Sometimes companies beat expectations, but every now and they absolutely crush them. That's what HPE did this week. The company reported first-quarter revenue of $7.7 billion, up 11% and far ahead of a consensus analyst estimate for quarterly revenue of $7.1 billion. The company's earnings per share and guidance also handily beat estimates.

"[T]his was an execution-focused quarter, we executed better, we accelerated our sales transformation, including our pricing, and sales-enablement decision-making," recently appointed HPE CEO Antonio Neri said about the results in an interview with Barron's. stock hits $1,500

Amazon stock's torrential rise persisted this week, closing at $1,500 exactly on Friday. That puts shares up about 76% in the past 12 months, from just under $850.

Bullishness toward Amazon stock recently has been driven by the company's strong third and fourth quarters. In Amazon's fourth quarter, net sales rose 38% year over year and earnings per share skyrocketed 143%. But what was arguably even more impressive was Amazon's guidance for first-quarter revenue to rise between 34% and 42%.

Along with Amazon's higher stock price, of course, is a pricier valuation. Amazon's price-to-sales ratio is now about 4.2, up from around 3 at the beginning of 2017.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned, Inc. Stock Quote, Inc.
$106.03 (-2.65%) $-2.89
Hewlett Packard Enterprise Company Stock Quote
Hewlett Packard Enterprise Company
$13.24 (-0.90%) $0.12
Snap Inc. Stock Quote
Snap Inc.
$13.10 (-6.20%) $0.86

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.