it

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