After over ten years, San Francisco’s Dropbox went public earlier Friday resulting in a surge in market value. The cloud-based file sharing service debuted on the NASDAQ at $29 and was valued at over $12 billion.
Following Snapchat’s market debut last year around this time, there was a drought of powerhouse tech companies going public. As it appears, Dropbox is likely to have some company in Spotify which is aiming at a market debut of April 3.
With the company now being a publicly traded entity, it could spiral into other areas as opposed to keeping with what brought it to the dance. It’s a necessary step if it hopes to keep pace with industry giants such as Amazon and Google who offer a number of services.
Not only that, but Dropbox is a service where the free option is enough for most of your needs. It’s in a similar position that social media platforms Twitter and Tumblr were in some time ago. Sure, there was buzz behind both but there was some head scratching as to exactly how Twitter would make money.
That isn’t to say that we should expect Dropbox to strike up a broadcast deal with NHL or get into gaming, but it’ll have to do something of note to part consumers from their dollars in droves.
SOURCE: Reuters
