When is it time to change companies
the major problem with my NEXT $1MIL STOCK! Dropbox Problem
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
[Music]
day
