12 Most Undervalued Tech Stocks to Invest in Now

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8. Dropbox, Inc. (NASDAQ:DBX)

Forward P/E Ratio: 12.67

Earnings Growth: 24.98%

Number of Hedge Fund Holders: 29

Dropbox, Inc. (NASDAQ:DBX) is a cloud-based storage solutions company that allows individuals and teams to manage their work and files securely from anywhere. It is one of the most undervalued tech stocks to invest in now.

The year 2024 was a transitional year for the company. During the fiscal third quarter of 2024 management announced launching Dropbox Dash for Business, an AI-powered universal search tool designed to enhance how teams find, organize, share, and protect their content across various applications. Management is betting highly on Dropbox Dash to bring future growth and profitability as the company is facing a slowdown in its core business. Due to the slowdown in core business,  Dropbox, Inc. (NASDAQ:DBX) reduced its employee headcount by 20%, translating to 528 jobs.

The company was able to post stable financial results for the fiscal third quarter of 2024 despite being in a strategic transition. It grew its total revenue by 0.9% year-over-year to reach $638.8 million. Revenue growth was driven by an addition of 19,000 users quarter-over-quarter, which led the annual recurring revenue to $2.579 billion.

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