the major problem with my NEXT $1MIL STOCK! Dropbox Problem
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Holy Smokas this aint no Jokas!! Did I get some negative comments about my next Million dollar stock from my last video. A lot of negative comments surrounding dropbox business model and why it will fail.
Every time I bring a new stock that I like in the stock market, I usually get a lot of negative comments about the specific stock. Today I will talk about the 3 biggest comments I got about dropbox stock. I will go in depth about these comments and why I believe that they are wrong.
Leave me a comment with your opinion on dropbox. Do you think this is a stock to buy now? Or is this a stock to watch? Do you think dropbox is going to get destroyed by another company? Appreciate your opinion!
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Who goes late last night I posted a video here on the main channel called my next 1 million plus dollar stock K. And in that video, I went into Dropbox stock very into detail on why I am so excited about that stock for the next five years.
And I gave my full bullish thesis out there was super in depth on this. And I got a lot of negative comments on that video. Okay, now First off, whenever I get into any new position, and I’m talking super hyped about it, okay.
I always get a lot of negative comments like this is consistent every single time I come with a new stock, there’s always a lot of like negativity around that stock and just like, Oh, this is gonna be a huge losing stock for you and things like that, not negative comments in the terms of like.
I hate you, you’re so dumb or something like that, just like negativity around the business model people trying to poke holes at and things like that, which I think is completely good. I think everybody should always walk into any investment with skepticism, right?
And so being that this is a new, a huge position for me. And I said in that video, I can make this my biggest position in my accounts, or close to my biggest position, right? This is kind of important that I at least come out and defend the three core comments.
I was getting time and time again. I went through them last night and I was like, dang, man, there’s a lot of negative comments. And they’re all in one of these three categories, essentially. Okay, three constant negative comments we got on that video.
Okay, the first one that I’ll address is competition. And basically everybody talking about Google Drive, Microsoft One Drive, well, not everybody but a lot of people talking about Google Drive, Microsoft One Drive, they’re gonna crush Dropbox.
Okay, a ton of people talking about competition. We’ll address that in this video. Okay, number two people saying the stock hasn’t done anything since when IPO so therefore it’s a loser stock, you shouldn’t get involved with it, it’s just not going to be a good stock because it hasn’t been a thing of the past.
We’ll discuss that. And the third thing is shorts, okay, a lot of shorts in the stock. And this was a comment I got much less than those other two, those other two were the main ones. But you know, some people brought up like short selling, things like that, how you deal with the shorts, because the stock is actually pretty heavily shorted.
And I’ll show you the eyes this it today. I mean, it’s like almost a shortest Tesla, believe it or not. Okay, so hope you guys enjoyed today’s video, hope you enjoy a video like this where I come out and defend a stock that I’m getting in big time.
You know, I don’t have to do this, but I thought it’d be really cool to like address this, and then kind of the negativity around the stock. So if you don’t mind, smash that thumbs up that helps you to channel out in a massive way.
I appreciate each and every one of you and I hope you appreciate me, you know, sharing the stocks on buying and things like that. And also, if you’re looking to learn directly from me on how to make more money in the stock market, while taking less risk, check out the first link in the description down there.
We actually even offer one on one coaching now. So my millionaire students if that’s ever something you’re interested in, okay, so let’s start getting in this. Number one, the competition. Okay, Google Drive, Microsoft OneDrive.
This was consistently brought up in the comments section, these two companies, they’re going to crush Dropbox, things like that. Okay, so we’re gonna start out with this. Okay, let’s let’s just find out are there is Microsoft and Google.
Are they new competition here? Or have they been in us for a while? Okay, when did Dropbox come out? 2007. When did OneDrive from Microsoft come out? 2007? When did Google Drive their cloud product come out? 2012. Okay, all these products are extremely well established.
They’ve all been in mass market for the longest time. And so you think the fact that all these companies have been competing with each other forever and ever? You think like Dropbox might not have grown, right? Because I mean, the competition’s been there for all these years.
It’s not like it’s new. And what we find is, Dropbox isn’t getting crushed. Actually, Dropbox is just crushing it. Okay. Dropbox is doing insanely well, like, look at the past five years of revenue for this company. Look at the way it’s grown from $604 million of revenue to $845 million of revenue to $1.1 billion in revenue to just under $1.4 billion of revenue to last year.
$1.66 billion of revenue. Okay, this company has not been crushed by Google and Microsoft, it continues to just crush it. Okay. It’s just doing amazing. Meanwhile, Google and Microsoft are doing amazing as well. Okay.
They don’t need to crush Dropbox to win. Okay, I can tell you that much. All the companies are thriving in the space. But that’s over the past few years. What about recently, maybe recently, there’s been a change, and maybe they’re getting crushed now?
No, I mean, look at the revenue growth. This was literally just reported last month, okay, out of Dropbox. revenue grew to $467 million in last quarter, up 16% year over year. So not only has this company grown throughout all this competition with them.
Microsoft and Google, but they continue to thrive and they continue to grow larger and larger and larger and put up amazing growth numbers. free cash flow came in at 120 million in the latest quarter. And not just that the company is expected to grow 14.2% next quarter, the quarter after that 10.8%.
This current year they’re expected to grow 14.4% and next year in 2021. The company is expected to grow right around 11%. And don’t be surprised if every single one of those numbers you see right there will Bibi Okay, if you look at Dropbox, historically, the company beats quarter in and quarter out.
So don’t be surprised if all those numbers I’m showing you right there are low, they’ll probably come in better than that. Okay, then. So when you look at all this, and you look at just the growth year after year after year, the constant growth expected growth, why haven’t they been crushed?
Like, like, why haven’t the big crush like there’s no new competitions, market? Google, Microsoft Dropbox, these are the three main players kind of in this cloud space of consumer cloud, and Dropbox is even involved in their business into more things now. So why haven’t they been crushed?
This isn’t new. Like, like, I don’t know, if people think like Google’s new or Microsoft’s new to like the cloud? No, they’ve been taking the super serious for a long, long time. And kind of a cardinal sin I’m seeing made out there is people think just because they personally might use Google, or they personally might use.
Microsoft, that therefore it means Dropbox is irrelevant. I can just tell you, just because you don’t personally use a product or service, it doesn’t mean that companies are relevant. Let me be very clear about that. Okay, perfect example is Microsoft. I don’t use one Microsoft product. I don’t have any Microsoft products.
I don’t think anybody in my entire business uses Microsoft products. Okay, we all use Apple devices. And we all use other software’s and things outside of Microsoft K. So my entire business model in me on an everyday basis, never use Microsoft. It doesn’t mean Microsoft’s irrelevant just because.
I don’t personally use it, or my business doesn’t use it. Microsoft has a $1.52 trillion dollar market cap. They don’t need me. And it’d be very, let’s say, ignorant for me to say, Well, I don’t personally use it. So therefore, Microsoft’s irrelevant, so I should never consider Microsoft as investment.
No, absolutely not. That’s not the way this works. Man. I have to take Microsoft seriously all the time, even if I don’t use it, because it doesn’t take me a rocket scientist for me to like, figure out like Microsoft’s extremely valuable.
Company that should be valued at, you know, a trillion dollars plus, because amazing business model that tons of people do use, and tons of people do love, okay, you shouldn’t have to personally own a Tesla to realize like.
Tesla’s an amazing company doing amazing things, right? That’s great if you do and it’s great if you’ve tried the product, but at the same time, you know, you don’t have to personally use a Tesla day in and day out to understand like Tesla’s a game changing company, right? Nvidia, I don’t use any Nvidia products.
I can’t think of one video product I have in my household. But at the same time, I recognize and video is an amazing company that massive amounts of people absolutely love. And you know, that’s why it has a $300 billion market cap on that company.
It would be silly for me to say, Well, I don’t use any Nvidia products, and I use these other processors or something else. So in video, it’s no, it’s just, it’s not the way this works, guys. So we go back to the site, just because you don’t personally use a product service doesn’t mean that company is irrelevant.
Just at the end of the day. Just keep that in mind. Okay, it’s a big mistake a lot of investors make out there. Okay. Number two, there’s a second thing let’s a lot of comments like this, like stock hasn’t done anything. It’s a loser stock, you know, why even get involved with that?
It’s done nothing but kind of go down since IPO and whatnot, and you know, in terms of has a stock not to anything? Absolutely. You’re 100% right. Okay. The company went public was at March 2018. It was in the high 20s.
It’s $19 here today, and when I did that video yesterday, it was what $18 and some change Dropbox, which means it fell fallen like what $10 plus per share since that IPO and I can tell you, that means literally nothing.
I mean, literally nothing. Okay, let me be very clear, nothing, okay, past performance of a stock does not equal future performance. Just because a stock went up a bunch does not mean that stocks gonna keep going up.
Just because the stock went down a bunch doesn’t mean that stocks gonna keep going down. That’s just not the way this works. Okay, let’s say for instance, we’re going to flip a coin. Okay, now I don’t have any coins around.
But you know, I always have some cash rounds. Okay, somebody wants to get it playing some some Texas Hold’em. I go play some Top Golf, and somebody wants me to take the money or something like that. I’ll do that. Okay, so I always got some cash around.
So let’s say got, you know, that there’s $2,000 worth 20s and I flipping okay. I mean, some of you guys could be thinking like, maybe you’ll land on heads, well, maybe you land on tails, we don’t know.
Okay, so I flip it, it lands on tails. Now, once it lands on tails, right? It’s still a 50% probability the next time it could come up tails or heads, right. But you got to be thinking, Well, you know, Phil on tails that time.
So that means next time it’s due to come up heads, right? No, that’s not the way this works. Okay, there’s still a 50% probability regardless of what happened this time. So a 50% probability, it could go up or down, okay.
Some people might be thinking, well, it went down. So it’s going to go down. Again, that’s not the way this works. It’s still a 50% probability. So I flip it again, it lands on tails again, people are like, Oh my gosh, it lands on tails again.
So it’s got to keep landing on tails ready to flip it again. it lands on heads. It’s a 50% probability each time okay? Nothing about the past matters at all. When it comes to stock prices, flipping a coin, those sorts of things. All that matters is a future.
I care personally about where Dropbox stock or any stock I’m getting involved with is going in 2021 2022 2023 and 50. Your year. That’s what matters to me. I don’t care if a stock’s gone up a ton down a ton done absolutely nothing.
Okay, it means literally nothing to me. What matters at the end of the day, what differentiates a super successful stock market investor or business man women out there? Okay? It’s two things, fundamentals, valuation. And that’s it.
Okay. fundamentals and valuation. That’s all that matters not whether that stock went up or down yesterday, last month, last year. Okay, fundamentals valuation, how much you paying for that company? What’s that company doing? What’s his competitors?
How’s it doing in the market? Is it growing? Is it likely to thrive in the future? All those sorts of things. That’s what matters. Okay? I post a video on my Instagram the other day, right? My personal Instagram. I don’t post a lot of videos on there anymore.
It was an interesting video. It was basically this great interview that was done with Jeff Bezos. And there are a ton of Jeff Bezos interviews out there, by the way, and it was done right. And Jeff Bezos in the interview, at one moment, he talks about how he Amazon stock.
Amazon stock fell, right after the tech bubble, it was went from $113 to $6. k, that’s one of the most dramatic falls you’ll ever hear about in the stock market ever in your life. Okay. I mean, if it fell from $18 to $6, that would be insane, right? That’d be like a 60.
Something percent drop, right? And that would make you say, what the heck, that’s insane. 113 to six is ridiculous. Okay. It didn’t mean like Amazon stock was not a buy at 20 at 10. At 30. At 40. No, of course not.
That’s not what it means at all. Just because the stock had been going down doesn’t mean you should look at Amazon be like, well, it’s $6 to $8 is $14 I shouldn’t buy it. No, of course not. You should be looking at the fundamentals and what the valuation was at that time, and then kind of decide do you want to buy that stock or not buy that stock?
That’s how the decision should be made. Okay, tells the stock rate in the public count work, you know, ridiculous 795% in stock, and absolutely incredible. Okay, I mean, it would be incredible if I was up 200 or 300% of stock, nevermind 795% on that stock, a Tesla stock did nothing for over five years.
I mean, absolutely nothing it had its up days and down days and update and down days. But it literally went nowhere. for over five years. I you know, I could have looked at it and been like, well, Tesla stock price hasn’t done anything over the last few years. So I shouldn’t get involved with that. Right?
I started buying that stock heavy about two years ago, roughly right. And I just kept adding, you know, basically between a one year ago and two years ago, right. And I easily could have looked at that way and been like, well, it stock hasn’t moved for years.
So it’s just not going to continue to move. No, that’s not the way this works. Okay. It’s just not the way this goes, I need to look at the fundamentals of the company, where the valuation was at. And I said this stock is priced silly. And this is a one of the best deals I can get in the stock market.
And, you know, the rest is history. So put that way. Okay. Nvidia. Nvidia stock did nothing. I mean, absolutely nothing from 2007 to 2015. Nvidia not okay. You know, if you were looking into Nvidia stock, you’re gonna set you know, let’s say you’re looking at a stock, you know, heavily in 2013 2014, you could have looked at the stock him and like, well, it’s done nothing for a year.
So I shouldn’t get involved with that stock. It’s just a it’s a it’s a it’s a bad stock because it hadn’t done anything. No, you need to be looking at the fundamentals where the valuation was at. I mean, that would have been really ridiculous for you to have not bought Nvidia at, you know, it was trading back then at like 1520 $25 a share all because, you know, it hadn’t done anything.
All that matters is fundamentals, your understanding of it, and valuation. Okay. That’s what matters. What about this stock here, this stock went down over 50%. After its IPO over 50%. as investors, we could have written that stock off and been like, that’s a bad stock.
No one believes in that stock. It’s gone down. 50% plus since IPO, right. You know what company that was Facebook, that was Facebook. Okay. Facebook went down over 50% after its IPO? I mean, would that have been smart or really silly to have written off Facebook stock at $18 a share?
Obviously, it would have been really silly to be like, well, it’s gone down since IPO, so I can’t buy No, okay. Just know, okay. Just because a stock has not done anything means nothing. That’s not the way this works is not the way any of this works. Okay? past performance is whatever.
Okay, fundamentals, valuation. All right. Now, let’s talk about shorts, dealing with the shorts, the short sellers, things like that. Okay. So Dropbox, look at this, the short percentage as a float of Dropbox stock rate around 7%. Okay, not a small number.
That’s actually, you know, there’s a lot there’s a lot of people short selling Dropbox stock, let’s just put it that way. That number would be that high for reference. Tesla’s right around that same level, okay, in terms of tests, or the short percentage of flow is 7.3%.
Okay, that’s rather large. That’s right there with Dropbox. And so if you’re looking at this, you might kind of scare you a little bit. Maybe you I don’t know a lot of people don’t believe in the stock, right? Same way.
A lot of people didn’t believe in Tesla. By the way, Tesla’s short percentage has come down you know, quite soon. nificantly over overtime. Let’s just put that way. But you know, a lot of people don’t believe in Dropbox the same way.
A lot of people haven’t believed in a lot of companies, right? And so it leads to a lot of shorts. And let me be very clear, I used to view shorts as the enemy I really did. The shorts are not my enemy. The short sellers are not my enemy.
The people that are negative around Dropbox stock, or any stock I’m involved with, they are not my enemies, they just aren’t they’re my best friends to be quite honest. Okay, they are my best friends to be quite honest.
Okay, the short sellers, what do these folks do they write negative articles, they come out with negative research reports that try to, you know, show why this stock is a bad stock and why no one should invest in a stock things like that,
right? This This happens with all stocks at short sellers, you know, get into essentially, okay, remember, Dropbox literally has in terms of the percentage of float short out there, like the same as Tesla, like, that’s a big number, right?
And so you know, this a lot of people short this stock and don’t believe in it, right? They comment negativity all the time. I mean, jeez, you know, you can’t go on to a message board or anywhere and try to talk about one of these stocks.
If they have a huge short percentage, because as soon as you talk about anything, the short sellers usually bring a very in mature, like debate to the stock, that’s just the way it goes, okay? Usually they they don’t like to talk on facts, they usually just like talking craziness is put that way.
And to be short, selling stocks usually have to be fairly crazy, because it’s usually, you know, just make way more money going long stocks on great companies, and it’s way less stressful, and you don’t have to worry about margin calls and things like that. And the whole system is rigged in your favor.
But you know, to be short, you have to be a little crazy. And so they just comments, you know, just completely ridiculous stuff, they won’t usually make up anything they can possibly make up. But when they’re doing all that when they’re doing what they do, and they’re scaring everybody out of that stock, or scaring everybody from that stock, right?
It keeps the stock price lower than it should be right? Because, you know, investors read this stuff, and they’re like, Oh, my gosh, and whether it’s live, or it’s truth, or it’s half truth, I mean, people read it. And a lot of people just say I can’t get involved with that stock, because of what I just read from that comment from that guy.
Maybe there’s some truth to that, or that that that article is so negative on this company, I can’t read that. So just keeps the stock price lower than really what it should be. Because people just say, I can’t buy it, I can’t buy it.
I don’t want in that, okay. And so it lets me essentially, if I’m getting a stock that’s heavily shorted, it lets me buy in over an extended period of time for a cheaper price than it really should be right? Because all these shorts are putting out all this negativity all the time.
And they’re keeping the stock price kind of artificially low, right? Because they’re constantly trying to scare people away from the stock. I mean, anytime, anything positive comes out about a stock and people can comment negativity, especially in terms of short sellers, they will do it in mass.
I mean, it’s like a flood. Like as soon as like, like, there’s so much more passionate than Long’s when it comes to giving their bearish thesis or just talking crazy negative things about it. Why because they’re on the hook in a really bad way.
And if things go the other way, there’s an unlimited loss for these individuals unlimited loss, okay, you know, if you had an unlimited loss, you’d be you’d need to, you know, write negative things every single time, anything positive came out as well.
So lets you build a position. And this is a stock that I want to keep buying for the next three to six months, I don’t just buy a stock all in one day, I’ve been building a really nice position in Dropbox, I want to continue to buy the stock for at least the next three, six months, if not the next year.
I want to keep buying in chunks, $5,000 $15,000 $25,000, chunks, chunk, chunk, chunk, and just keep building the position bigger and bigger and bigger. And man, when you got short sellers constantly bringing negativity to that stock, it just keeps a lot of the Long’s away in the short term. And it lets you it lets you build in really a nice position.
Let’s just put it that way. And, you know, in the Tesla situation, I know we always used to get frustrated with the lungs and the things they would fabricate out there and things like that. But ultimately, at the end of the day, they kept a lot of investors from getting in that stock and us that were you know.
Let’s call it brave enough or had you know, enough smarts to kind of realize what was going on there. A lot of us will got in that stock for a much lower price than we should have been able to get into that stock.
Let’s just put it that way. It is what it is. Okay, so those are the three constant negative comments that we got on that video yesterday in terms of Dropbox and I hope I did a good job of addressing those and you know if I didn’t you know it is what it is, but that’s about it for the Dropbox.
Alright, hope you guys enjoy today’s video. As always, if you don’t mind smash that thumbs up helps out the YouTube channel and a massive, massive way and I appreciate each and every one of you.
Also you want to learn directly from me how to make more money in the stock market by taking less risk you want to apply for my private group, things like that, check out first link in the description down there. Thank you for watching and have a great day.