Dropbox (DBX) has never been a particularly good stock – but I have reason to believe that the stock might plummet significantly sometime after November of this year due to a massive decrease in revenue. I work in film/media and have used Dropbox’s unlimited storage plan for more than 6 years. It’s been great! I’ve paid $98/month and have around 250 TB stored on their cloud. However, Dropbox is doing away with their unlimited plan. Last year, a rep from Dropbox called me and I was informed that I would have until November of this year (2024) to remove my data or have to pay a significantly higher price. They are now charging per 5TB. My new price would be over $2000/month. Obviously this is an insane increase in price and something I won’t pay and after calling today to make sure they didn’t design some sort of retention offer, which they indeed haven’t, I have begun the process of removing all my data from their cloud and storing it locally. So the question becomes – if thousands of people like me all jump ship and leave Dropbox, how much could this affect their revenues? Some people with unlimited plans pay more than me – as the price is based on how many users you have on your unlimited account, so there can be other users with unlimited accounts that pay $200 or $500 or even 1000 per month, their pricing would also likely 10x or 20xI’m picturing 50k or more $100-$500/ month plans all leaving. I’m not a stock picker and don’t usually try to make plays based on speculative things like this – but this is a situation that has peaked my interest. I currently hold zero positions in DBX. But curious how others might see this playing out.
Leave a Reply