the major problem with my NEXT $1MIL STOCK! Dropbox Problem

by birtanpublished on September 26, 2020

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

Related Videos

How's it going everybody this is the stimulus check hub here to give you your daily stimulus check on unemployment benefits updates and latest information i...
Man dalio just came out with a really stupid article so stupid i had to talk about it it's an opinion piece in the financial times called don't be blind...
Well holy smokers guys did you see the stock market today look at this dow jones industrial average down about 650 points here today look at the s p 500 down 1....
How's it going everybody this is the stimulus check hub here to give you your daily stimulus check and unemployment benefits updates and latest information ...
How's it going everybody this is the stimulus check hub here to give you your daily stimulus check and unemployment benefits updates and latest information ...
During the initial ccpv drop that we had back in march everybody was looking at buffett wondering what he was gonna do because he's the guy always looking f...
hey everybody this is the stimulus check hub here the only place to go for the most up-to-date information about your stimulus check and unemployment benefits ...
How's it going everybody this is the stimulus check hub here here to give you your daily stimulus check and unemployment benefits updates and latest informa...
How's it going everybody this is the stimulus check hub here to give you your daily stimulus check and unemployment benefits updates and the latest informat...
Well hello there guys and welcome into today's video i hope you have a great day out there as always today we get to do my favorite video i'm doing this...
How's it going everybody this is the stimulus check hub here to give you your daily stimulus check and unemployment benefits updates and latest information ...
how's it going everybody this is the stimulus check hub here to give you your daily stimulus check and unemployment benefits updates and latest information ...
okay back at it back to the ray dalio stuff about debt cycles and where everything is headed the world order the changing world order we are finally at the end ...
how's it going everybody this is the stimulus check hub here to give you your daily stimulus check and unemployment benefits updates and latest information ...
how's it going everybody this is the stimulus check hub here to give you your daily stimulus check and unemployment benefits updates and latest information ...
how's it going everybody this is the stimulus check hub here to give you all the updated information and rants on your stimulus checks and unemployment ben...
how's it going everybody this is the stimulus check hub here here to give you your daily stimulus check and unemployment benefits updates and this one is go...
how's it going everybody this is the stimulus check hub here to give you your daily stimulus check and unemployment benefits updates and latest information ...
how's it going everybody this is the stimulus check hub here to give you your daily stimulus check and unemployment benefits updates and latest information ...
Okay so buffett bought stock in a gold company and that got everybody freaked out because they were already worried about the dollar so a lot of people think th...