Dropbox shares soar 40 percent in U.S. market debut

Dropbox shares soar 40 percent in U.S. market debut

And given how many analysts, reporters and other CEOs are closely watching Dropbox's performance, it theoretically should make people fear public markets a little bit less.

The question is whether the hot demand that drove up its IPO price underpins a strong bid for its shares on a day when USA equity index futures signal another rough trading session.

Having topped expectations with the upsized price of its initial public offering, Dropbox Inc on Friday faces its next big challenge: a successful launch of trading when global stock markets are on the defensive and tech shares are particularly soft. That represents just over 40 percent growth from the initial price, and gives the company a valuation of over $12.5 billion.

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(NASDAQ: AAPL). It will be hard for Dropbox because many companies already have millions more in paying users including larger funds to enhance its technology.

Dropbox shares soared as much as 48 percent to $31 at 11:37 a.m.in NY, giving the company a market value of $11.9 billion. Originally, the company expected to raise $756 million, in addition to Salesforce.com Inc.'s $100 million investment through a private placement. Snap's shares soared soon after but went on to fall below the...

Uber, the most valuable private tech company, is not expected to go public until next year.

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The company has yet to turn a profit, but its revenues have grown rapidly over the past few years from $603 million in 2015 to over $1 billion in 2017. Its full-year net loss, meanwhile, almost halved to $111.7 million.

Dropbox also said data and security breaches could hurt its ability to keep customers or attract new ones.

The cloud storage company's debut marks an end to a long dry spell in the U.S. IPO market and is the biggest tech IPO since Snapchat owner Snap Inc listed in March a year ago. Dropbox shares are set to start trading on Friday at the Nasdaq under the symbol "DBX".

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This post originally appeared on Business Insider.

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