Chamath Palihapitiya makes an interesting case for investing in BOX.
(12:25 minutes of build up, nearly 6 minutes of pitch)
What do folks here think about the company?
Thanks in advance,
Rob - I saw this and followed the debate on Seeking Alpha too.
I hold Box (about a 1.5% holding - making it within the top 20) and I’m up a lot since I entered last year (+83%). When Drop Box came along I read all the material that made me question whether I needed to switch horses mid race.
Box is 1/3 the market cap of Drop Box, half the revenues but growing at a slightly slower pace and declining (~25%).
In someways I feel the same kind of conviction about BOX as Pure Storage. The cloud is where it is at and more and more companies are turning to it for big data storage (witness AWS and Azure success). Holding data and software apps in the cloud is the way the world is going. Throw in what AI can do (which requires data and apps to be perform anything) and you have a potential marriage made in heaven between Box and the exploitation of AI. Why go through the hassle of moving your data and your apps off Box and out of the cloud in order to apply AI.
Box to a degree is up against Zendesk, SFDC, Cloudera, Autodesk, Azure, Red Hat, Google, Go Daddy as well as Drop Box but I have seen so many mega companies move their filing and storage to Box in the cloud - my own company being one of them.
In fact we moved off Drop Box onto Box. Leaving aside how pointless it would be for a small start up to build a server farm of its own to host data and run apps, we moved to Box partly because of the pricing model but also because it has become the de facto standard in my industry (Life Sciences and Healthcare) for secure healthcare information systems which is accepted as the certified service level that procurement and liability insurance schemes as well as industry codes recognise.