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Well guys late last night i posted a video here on the main channel called my next 1 million plus dollar stock okay and in that video i went into dropbox stock very into detail on why i am so excited about that stock for the next five years and i gave my full bullish thesis out there went super in depth on this and i got a lot of negative comments on that video okay
Now first off whenever i get into any new position and i’m talking super hyped about it okay i always get a lot of negative comments like this is consistent every single time i come up with a new stock there’s always a lot of like negativity around that stock and just like oh this is gonna be a huge losing stock for you and things like that not negative comments
In the terms of like i hate you you’re so dumb or something like that just like negativity around the business model people trying to poke holes at it and things like that which i think is completely good i think everybody should always walk into any investment with skepticism right and so being that this is a new huge position for me and i said in that video
I could make this my biggest position in my accounts or close to my biggest position right this is kind of important that i at least come out and defend the three core comments i was getting time and time again i went through them last night and i was like dang man there’s a lot of negative comments and they’re all in one of these three categories essentially
Okay three constant negative comments we got on that video okay the first one that i’ll address is competition and basically everybody talking about google drive microsoft onedrive well not everybody but a lot of people talking about google drive microsoft onedrive they’re gonna crush dropbox okay a ton of people talking about competition we’ll address that in
This video okay number two people saying the stock hasn’t done anything since it went ipo so therefore it’s a loser stock you shouldn’t get involved with it it’s just not going to be a good stock because it hasn’t done anything in the past we’ll discuss that and the third thing is shorts okay a lot of shorts in this stock and and this was a comment i got much
Less than those other two those other two were the main ones but you know some people brought up like short selling things like that how do you deal with the shorts because the stock is actually pretty heavily shorted and i’ll show you guys this it today i mean it’s like almost as short as tesla believe it or not okay so i hope you guys enjoyed today’s video i
Hope you enjoy a video like this where i come out and defend a stock that i’m getting in big time uh you know i don’t have to do this but i thought it would be really cool to like address this and then kind of the negativity around the stock so if you don’t mind smash the thumbs up that helps youtube channel out in a massive way i appreciate each and every one of
You and i hope you appreciate me you know sharing the stocks that i’m buying and things like that and also if you’re looking to learn directly from me on how to make more money in the stock market while taking less risk check out the first link in the description down there we actually even offer one-on-one coaching now so my millionaire students if that’s ever
Something you’re interested okay so let’s start getting in this number one the competition okay google drive microsoft onedrive this was consistently brought up in the comment section these two companies uh they’re gonna crush dropbox things like that okay so we’re gonna start out with this okay let’s let’s just find out or is it microsoft and google are they new
Competition here or have they been on this for a while okay when did dropbox come out 2007. when did onedrive from microsoft come out 2007. when did google drive their cloud product come out 2012 okay all these products are extremely well established they’ve all been in mass market for the longest time and so you’d think the fact that all these companies have
Been competing with each other forever and ever you’d think like dropbox might not have grown right because i mean the competition’s been there for all these years it’s not like it’s new and what we find is dropbox isn’t getting crushed actually dropbox is just crushing it okay dropbox is doing insanely well like look at the past five years of revenue for this
Company look at the way it’s grown from 604 million dollars of revenue to 845 million dollars of revenue to 1.1 billion dollars in revenue to just under 1.4 billion of revenue to last year 1.66 billion dollars of revenue okay this company has not been crushed by google and microsoft it continues to just crush it okay it’s just doing amazing meanwhile google and
Microsoft are doing amazing as well okay they don’t need to crush dropbox to win okay i can tell you that much all the companies are thriving in the space but that’s over the past few years what about recently maybe recently there’s been a change and maybe they’re getting crushed now no i mean look at the revenue growth this was literally just reported last month
Okay out of dropbox revenue grew to 467 million dollars in late quarter up 16 percent year over year so not only has this company grown throughout all this competition with them microsoft and google but they continue to thrive and they continue to grow larger and larger and larger and put up amazing growth numbers free cash flow came in at 120 million in the
Latest quarter and not just that the company is expected to grow 14.2 next quarter the quarter after that 10.8 percent this current year they’re expected to grow 14.4 and next year in 2021 the companies expect to grow right around 11 and don’t be surprised if every single one of those numbers you see right there will be b okay if you look at dropbox historically
The company beats quarter in and quarter out so don’t be surprised if all those numbers i’m showing you right there are low they’ll probably come in better than that okay and so when you look at all this and you look at just the growth year after year after year the constant growth the expected growth why haven’t they been crushed like like why haven’t they been
Crushed like there’s no new competition in this market google microsoft dropbox these are the three main players kind of in this cloud space of consumer cloud and dropbox is even evolved in their business into more things now so why haven’t they been crushed this isn’t new like like i don’t know if people think like google’s new or microsoft’s new to like the
Cloud no they’ve been taking the super series for a long long time and kind of a cardinal sin i’m seeing made out there is people think just because they personally might use google or they personally might use microsoft that therefore it means dropbox is irrelevant i can just tell you just because you don’t personally use a product or service it doesn’t mean
That companies irrelevant let me be very clear about that okay perfect example is microsoft i don’t use one microsoft product i don’t have any microsoft products i don’t think anybody in my entire business uses microsoft products okay we all use apple devices and we all use other softwares and things outside of microsoft okay so my entire business model in me on
An everyday basis never use microsoft it doesn’t mean microsoft’s irrelevant just because i don’t personally use it or my business doesn’t use it microsoft has a 1.52 trillion dollar market cap they don’t need me and and it’d be very let’s say ignorant for me to say well i don’t personally use it so therefore microsoft’s irrelevant so i should never consider
Microsoft as investment no absolutely not that’s not the way this works man i have to take microsoft seriously all the time even if i don’t use their business it doesn’t take know a rocket scientist for me to like figure out like microsoft’s an extremely valuable company that should be valued at you know a trillion dollars plus because amazing business model
That tons of people do use and tons of people do love okay you shouldn’t have to personally own a tesla to realize like tesla’s an amazing company doing amazing things right that’s great if you do and it’s great if you’ve tried the product but at the same time you know you don’t have to personally use a tesla day in and day out to understand like tesla is a
Game-changing company right nvidia i don’t use any nvidia products i can’t think of one video product i have in my household but at the same time i i recognize nvidia is an amazing company that massive amounts of people absolutely love and you know that’s why it has a 300 billion dollar market cap on that company it would be silly for me to say well i don’t use
Any nvidia products and i use these other processors or something else so in video no that’s just it’s not the way this works guys so we go back to this like just because you don’t personally use a product service doesn’t mean that company is irrelevant just at the end of the day just keep that in mind okay it’s a big mistake a lot of investors make out there
Okay number two this is the second thing i saw a lot of comments like this like stock hasn’t done anything it’s a loser stock you know why even get involved with that it’s done nothing but kind of go down since ipo and whatnot and you know in terms of it has a stock not done anything absolutely you’re 100 right okay the company went public was that march 2018
It was in the high 20s it’s 19 here today and when i did that video yesterday it was what 18 and some change dropbox which means it’s fallen like what 10 plus per share since that ipo and i can tell you that means literally nothing i mean literally nothing okay let me be very clear nothing okay past performance of a stock does not equal future performance just
Because a stock went up a bunch does not mean that stock’s going to keep going up just because the stock went down a bunch doesn’t mean that stock’s going to keep going down that’s just not the way this works okay let’s say for instance we’re going to flip a coin okay now i don’t have any coins around but you know i always have some cash around in case somebody
Wants to get it playing some some texas hold them and go play some topgolf and somebody wants me to take their money or something like that i’ll do that okay so i always got some cash around so let’s say i got you know there’s two thousand dollars worth 20s and i flip it okay i mean some of you guys could be thinking like maybe you’ll land on heads well maybe
You’ll land on tails we don’t know okay so i flip it it lands on tails now once it lands on tails right it’s still a 50 probability the next time it could come up tails or heads right but you would be thinking well you know i fell on tails that time so that means next time it’s due to come up heads right no that’s not the way this works okay it’s still a 50
Probability regardless of what happened this time still a 50 probability it could go up or down okay some people might be thinking well it went down so it’s going to go down again that’s not the way this works it’s still a 50 probability so i flip it again it lands on tails again people are like oh my gosh it lands on tails again so it’s got to keep landing on
Tails right flip it again it lands on heads it’s a 50 probability each time okay nothing about the past matters at all when it comes to stock prices flipping a coin those sorts of things all that matters is a future i care personally about where dropbox stock or any stock i’m getting involved with is going in 2021 2022 2023 and future years that’s what matters
To me i don’t care if a stock’s gone up a ton down a ton done absolutely nothing okay it means literally nothing to me what matters at the end of the day what differentiates a super successful stock market investor or businessman women out there okay it’s two things fundamentals valuation and that’s it okay fundamentals and valuation that’s all that matters not
Whether that stock went up or down yesterday last month last year okay fundamentals valuation how much are you paying for that company what’s that company doing what’s its competitors how’s it doing in the market is it growing is it likely to thrive in the future all those sorts of things that’s what matters okay i post a video on uh my instagram the other day
Right my personal instagram i don’t post a lot of videos on there anymore it was an interesting video it was uh basically this great interview that was done with jeff bezos and there aren’t a ton of jeff bezos interviews out there by the way and uh it was done right and jeff bezos in that interview at one moment he talks about how amazon stock amazon stock fell
Uh right after the tech bubble it was went from 113 dollars to six dollars okay that’s one of the most dramatic falls you’ll ever hear about in the stock market ever in your life okay i mean if it fell from eighteen dollars to six dollars that would be insane right that would be like a sixty something percent drop right and that would make you say what the heck
That’s insane 113 to the six is ridiculous okay it didn’t mean like amazon stock was not a buy at 20 at 10 at 30 at 40. no of course not that’s not what it means at all just because the stock had been going down doesn’t mean you should look at amazon be like well it’s six dollars it’s eight dollars it’s 14 i shouldn’t buy it no of course now you should be looking
At the fundamentals and what the valuation was at that time and then kind of decide do you want to buy that stock or not buy that stock that’s how the decision should be made okay tesla stock right in the public account we’re you know ridiculous 795 on that stock absolutely incredible okay i mean it would be incredible if i was up 200 or 300 percent of stock
Never mind 795 on that stock okay tesla stock did nothing for over five years i mean absolutely nothing it had its up days and down days and up days and down days but it literally went nowhere for over five years i you know i could have looked at that and been like well tesla stock price hasn’t done anything over the last few years so i shouldn’t get involved
With that right i started buying that stock heavy about two years ago roughly right and i just kept adding you know basically between one year ago and two years ago right and i usually could have looked at that way and been like well it’s stock hasn’t moved for years so it’s just not going to continue to move no that’s not the way this works okay it’s just not
The way this goes i need to look at the fundamentals of the company where the valuation was at and i said this stock is priced silly and this is a one of the best deals i can get in the stock market and uh you know the rest is history let’s just put that way okay nvidia nvidia stock did nothing i mean absolutely nothing from 2007 to 2015. nvidia not okay you
Know if you were looking into nvidia stock you could have said you know let’s say you’re looking into stock you know heavily in 2013 2014 you could have looked at the stock and been like well it’s done nothing for a year so i shouldn’t get involved with that stock it’s just a it’s a it’s a it’s a bad stock because it hasn’t done anything no you need to be looking
At the fundamentals where the valuation was at i mean that would have been really ridiculous for you to have not bought nvidia at you know it was trading back down at like 15 20 25 a share all because you know it hadn’t done anything all that matters is fundamentals your understanding of it and valuation okay that’s what matters what about this stock here this
Stock went down over 50 percent after its ipo over 50 as investors we could have written that stock off and been like that’s a bad stock no one believes in that stock it’s gone down 50 plus since ipo right you know what company that was facebook it was facebook okay facebook went down over 50 percent after it’s ipo i mean would that have been smart or really
Silly to have written off facebook stock at 18 a share obviously it would have been really silly to be like well it’s gone down since ipo so i can’t buy it no okay just no okay just because the stock has not done anything means nothing that’s not the way this works it’s not the way any of this works okay past performance is whatever okay fundamentals valuation
All right now let’s talk about shorts dealing with the shorts short sellers things like that okay so dropbox look at this short percentage as a float of dropbox stock right around seven percent okay not a small number that’s actually you know there’s a there’s a lot of people short selling dropbox stock let’s just put it that way for that number to be that high
For reference tesla’s right around that same level okay in terms of tests so the short percentage of float is 7.3 percent okay that’s rather large that’s right there with dropbox and so if you’re looking at this it might kind of scare you a little bit might be like whoa a lot of people don’t believe in this stock right same way a lot of people didn’t believe in
Tesla by the way tesla short percentage has come down you know quite significantly uh over over time let’s just put it that way but you know a lot of people don’t believe in dropbox the same way a lot of people haven’t believed in a lot of companies right and so it leads to a lot of shorts and let me be very clear i used to view shorts as the enemy i really did
The shorts are not my enemy the short sellers are not my enemy the people that are negative around dropbox stock or any stock i’m involved with they are not my enemies they just aren’t they’re my best friends to be quite honest okay they are my best friends to be quite honest okay the short sellers what do these folks do they write negative articles they come
Out with negative research reports that try to you know show why this stock is a bad stock and why no one should invest in stock things like that right this happens with all stocks that short sellers you know get into essentially okay and remember dropbox literally has in terms of the percentage of float short out there like the same as tesla like that’s a big
Number right and so you know this a lot of people short this stock and don’t believe in it right they they comment negativity all the time i mean geez you know you can’t go onto a message board or anywhere and try to talk about one of these stocks if they have a huge short percentage because as soon as you talk about anything the short sellers usually bring a
Very immature like debate to the stock that’s just the way it goes okay usually they they don’t like to talk on facts they usually just like to talk in craziness let’s put that way and to be short selling stocks you usually have to be fairly crazy because it’s usually uh you know you just make way more money going long stocks on great companies and it’s way less
Stressful and you don’t have to worry about margin calls and things like that and the whole system is rigged in your favor but you know to be short you have to be a little crazy and so they just comments you know just completely ridiculous stuff they will usually make up anything they can possibly make up but when they’re doing all that when they’re doing what
They do and they’re scaring everybody out of that stock or scaring everybody from that stock rate it keeps the stock price lower than it should be right because you know investors read this stuff and they’re like oh my gosh and whether it’s lie or it’s truth or it’s half truth i mean people read it and a lot of people just say i can’t get involved with that stock
Because of what i just read from that comment from that guy maybe there’s some truth to that or that that article was so negative on this company i can’t read that so it just keeps the stock price lower than really what it should be because people just say i can’t buy it i can’t buy it i don’t want in that okay and so it lets me essentially if i’m getting in stock
That’s heavily shorted it lets me buy in over an extended period of time for a cheaper price than it really should be right because all these shorts are putting out all this negativity all the time and they’re keeping the stock price kind of artificially low right because they’re constantly trying to scare people away from the stock i mean anytime anything positive
Comes out about a stock and people can comment negativity especially in terms of short sellers they will do it in mass i mean it’s like a flood like as soon as like like there’s so much more passionate than longs when it comes to giving their bearish thesis or just talking crazy negative things about it why because they’re they’re on the hook in a really bad
Way and if things go the other way there’s an unlimited loss for these individuals unlimited loss okay you know if you had an unlimited loss you’d be you’d need to you know write negative things every single time anything positive came out as well so it lets you build a position and this is a stock that i want to keep buying for the next three to six months i
Don’t just buy in a stock all in one day i’ve been building a really nice position in dropbox i want to continue to buy the stock for at least the next three to six months if not the next year i want to keep buying in chunks five thousand dollars fifteen thousand dollar twenty five thousand dollar chunks chunk chunk chunk and just keep building the position bigger
And bigger and bigger and man when you’ve got short sellers constantly bringing negativity to that stock it just keeps a lot of the longs away in the short term and it lets you it lets you build in really a nice position let’s just put it that way and you know in the tesla situation i know we always used to get frustrated with the longs and the things they would
Fabricate out there and things like that but ultimately at the end of the day they kept a lot of investors from getting in that stock and us that were you know let’s call it brave enough or had you know enough smarts to kind of realize what was going on there a lot of us will got in that stock for a much lower price than we should have been able to get in that
Stock let’s just put it that way and it is what it is okay and so those are the three constant negative comments we got on that video yesterday in terms of dropbox and i hope i did a good job of addressing those and you know if i didn’t you know it is what it is but that’s about it for the dropbox all right hope you guys enjoyed today’s video as always if you
Don’t mind smash that thumbs up helps out the youtube channel in a massive massive way and i appreciate each and every one of you also if you want to learn directly from me how to make more money in the stock market by taking less risk you want to apply for my private group things like that check out first link in the description down there thank you for watching and have a great day
Transcribed from video
the major problem with my NEXT $1MIL STOCK! Dropbox Problem By Financial Education
