10 Worst Cloud Stocks To Buy According to Short Sellers

3. Dropbox, Inc. (NASDAQ:DBX)  

Short % of float: 6.76%

Number of Hedge Fund Holders: 41

Dropbox, Inc. (NASDAQ:DBX) is a file hosting service provided by Dropbox, Inc., based in San Francisco, California. It offers cloud storage, file synchronization, personal cloud services, and client software.

In August, Dropbox, Inc. (NASDAQ:DBX) reported its Q2 2024 earnings, surpassing revenue expectations with a 1.9% year-over-year increase to $635 million. The company also highlighted progress on its AI-powered search tool, Dash. Despite challenges in its Teams business and anticipated volatility in the latter half of the year, Dropbox is making significant improvements to its core offerings and preparing for the broader rollout of Dash.

KeyBanc reaffirmed its Overweight rating on Dropbox, Inc. (NASDAQ:DBX), maintaining a price target of $31. The rating follows Dropbox’s recent acquisition of Reclaim, an AI-driven scheduling app. The acquisition includes the Reclaim.ai team and supports the service’s ongoing development, with plans to expand integrations to platforms like Outlook. KeyBanc expects this move to enhance Dropbox’s workflow capabilities through advanced AI technologies.

Insider Monkey’s Q2 data showed 41 hedge funds bullish on Dropbox, Inc. (NASDAQ:DBX), a notable rise from 28 in the previous quarter. The largest stakeholder, Renaissance Technologies, holds 10.3 million shares valued at $231.76 million.