Dropbox got the famous “bump” in its first hour of trading on the Nasdaq Friday, hitting a high of $31 in early trading after setting its initial price at $21 last year, in one of the biggest tech IPOs in quite some time.
The stock, listed as “DBX” on the Nasdaq, opened just under $29 and traded as high as $31.60 in the early go. There’s a school of thought that IPOs should try to avoid that vaunted first-day bump by getting as much money as they can from the initial price, but everybody likes to see those green numbers on their stock tracking service of choice, and that’s what Dropbox shareholders got Friday morning.
The bump comes on another weak day for the overall stock market, as well, after someone forgot to take President Trump’s iPhone away from him and he suggested on Twitter that he might veto the omnibus spending bill currently awaiting his signature to avoid a government shutdown.
Dropbox saw a steady uptick in demand for its shares after filing to go public, raising its expected price twice from its initial projections. The company is unprofitable but growing, and occupies an interesting slice of the cloud services market powered by homegrown infrastructure.
The stock closed the trading day at $28.48, up 35 percent.