(Recode)– Dropbox shares jumped 36 percent in Dropbox’s debut as a public company, ending the day with a market value of about $10 billion.
In one of 2018’s marquee tech IPOs, Dropbox’s stock pop showed a high demand for tech IPOs, despite weak performance by some major tech stocks, including an 11 percent decline for Facebook in the past month as revelations of a data scandal erupted last week. That appeared to drag down the industry altogether, with Google and Apple having fallen about 7 percent this month.
Dropbox trading under ticker symbol DBX on the Nasdaq closed the day at about $28.50 a share, a significant mark for the company’s later-round investors who bought equity at around that price.
That’s a surprising sign of strength for Dropbox — many observers expected the file-sharing company to not reach the last valuation. And given how many analysts, reporters and other CEOs are closely watching Dropbox’s performance, it theoretically should make people fear public markets a little bit less.
Yesterday, Dropbox stock had priced higher than expected for its IPO, at $21 a share. That gave it a non-diluted market cap of about $8.3 billion, still below its last private funding round valuation of $10 billion.
Now the question is how Dropbox’s stock price will fare in its opening quarters — and once the lock-up ends and insiders are allowed to sell their shares.