Dropbox Earnings Up Next
US tech company Dropbox is due to report earnings later today. The company’s shares have been languishing over recent months, following the decline seen across November/December last year. Price has been stuck in a tight block of consolidation between the 22.75 level and 25.46 level, underpinned also by the near channel low. While Dropbox’s last earnings release was better-than-expected, shares fell into the start of 2022 as part of the broader dip in tech stocks. However, with those declines looking to have stabilised recently, the focus now is on whether Dropbox shares can recover near-term.
Focusing on today’s earnings release, the market is looking for earnings per share of $0.37 on revenues of $557.96 million. Given that this is broadly in line with what we saw over the prior quarter it’s going to take a strong beat to help drive shares higher near term with the risk that any unexpected weakness will weigh on prices.
Technical Views
DBX
Price action is potentially carving out a base between the 22.75 level and 25.46 level. The recent rising trend line describes an ascending triangle pattern building against resistance, suggesting room for a break higher near term. If we do see a break above this level, look for a test of the 27.86 level initially, ahead of the bear channel top above.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.