Dropbox got the famous "bump" in its first hour of trading on the Nasdaq Friday, hitting a high of $31 in early trading after setting its initial price at $21 a year ago, in one of the biggest tech IPOs in quite some time.
The stock is trading on the Nasdaq Global Select Market under the symbol DBX.
At the time of the Dropbox IPO, the stock sold for $21 per share. However, as a public company Dropbox will be under pressure to quickly trim its losses.
Dropbox's debut is the biggest tech IPO since Snap Inc., the owner of multimedia messaging app Snapchat, went public on March 2, 2017. Dropbox's IPO was one of the more high anticipated ones in 2018, after the company filed for a confidential IPO back in January.
The regulatory filing Dropbox submitted for its IPO showed that the company had more than 11 million paying users.
Dropbox, which faces strong competition from tech giants Apple and Google, posted slightly more than $1.1 billion in revenue and a net loss of almost $112 million a year ago. "It has an attractive story to justify its need for financing and the market dynamics are good", said Josh Lerner, professor of Investment Banking at Harvard Business School.
The San Francisco-based company, which started as a free service to share and store photos, music and other large files, competes with Alphabet Inc's Google, Microsoft Corp and Amazon.com Inc as well as Box Inc. Full-year net loss almost halved from the $210.2 million in 2016.
The strong demand suggested not all tech companies have been hit by the events of this week, when big players, especially in social media, have seen their shares dive following reports that a data analysis firm hired by Donald Trump's presidential campaign misused personal information of some 50 million Facebook users.
'If investors had bought Dropbox stock within the last six months, they'd be up over 75 percent, ' he added.