Abandoning an old stock on my watchlist, despite it falling to 12x earnings

AI Summary

Author abandons Dropbox ($DBX) watchlist position, citing negative growth, lack of dividend, and personal subscription cancellation as thesis break.

DBX — AVOID The author is abandoning Dropbox as an investment, citing slightly negative growth and the fact that Microsoft Office subscriptions now include 1TB of storage, making DBX redundant for their use case. The author also criticizes management for not initiating a dividend despite single-digit growth, calling it a lack of respect for minority shareholders. The thesis broke after the author decided to cancel their own subscription.

I might have reconsidered if they initiated (and grew) a dividend the moment they hit 1-3 quarters of single digit growth. Alas no respect for minority shareholders + weird anecdata = I’m out

Score 12

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u/foira Reddit r/ValueInvesting

Avoid DBX: negative growth, no dividend, weak moat

The author is abandoning Dropbox as an investment, citing slightly negative growth and the fact that Microsoft Office subscriptions now include 1TB of storage, making DBX redundant for their use case. The author also criticizes management for not initiating a dividend despite single-digit growth, calling it a lack of respect for minority shareholders. The thesis broke after the author decided to cancel their own subscription.

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