Reuters - Video

Edition: U.S. | U.K. | IN | CN

Business

Box jumps in NYSE debut

Friday, January 23, 2015 - 01:59

Shares of online data provider Box rose as much as 77 percent in its debut, valuing the company at close to $3 billion at one point. Bobbi Rebell reports.

▲ Hide Transcript

View Transcript

When the opening bell rang at the NYSE, Box CEO Aaron Levie, and the folks behind the cloud storage company's IPO were all smiles. But little did they know the stock would surge close to 80 percent in the first day of trading, pushing its value close to $3 billion. Investors were ready and willing to pay. Manhattan Venture Partner's Max Wolff: SOUNDBITE: MAX WOLFF, MANAGING PARTNER, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "The company actually was going at an even higher price for a while in the private market. Had to reset to a lower IPO price, indicated a range of $11 to $13, and then it was a really small float. So, a lot of buzz a lot of turmoil. It's an exciting space. The company showed very good growth recently." Shares actually priced at $14. As for that growth, revenues rose 80 percent in the nine months ending October 31st. But Box is not profitable. And it faces a lot of competition in the cloud storage market. In addition to rival Drop box, big players like Microsoft, Google and Apple can use storage as a kind of loss leader. Reuters BreakingViews Rob Cyran: SOUNDBITE: ROB CYRAN, COLUMNIST, REUTERS BREAKING VIEWS (ENGLISH) SAYING: "The thing is everyone is offering this because everyone wants to sell other services in addition to that. So Microsoft, they give you a deal on online storage because they want to sell you apps and software that runs on that data. Amazon does the same thing. And Box because they are so small, they are going to get squeezed out." Box is trying to branch out instead of getting boxed in. For example, it offers specialized storage options such as digital versions of X-rays for drugmakers. SOUNDBITE: MAX WOLFF, MANAGING PARTNER, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "They are trying to be a higher value added and differentiated product, which is why they are pushing everyone not to think of them as the storage and sync name they have built themselves on, more as this collaboration tool they have become in the last year or so. Again though still pretty early going and still not profitable." The stakes are high. The market for file storage and sharing is likely to grow by about 23 percent to $2.3 billion over the next five years, according to research firm IDC.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Box jumps in NYSE debut

Friday, January 23, 2015 - 01:59

Editors' Picks »

Moving Pictures »

Images of December Images of December

Tue, 23 Dec, 2014 - (0:30)

Tsunami - unclaimed possessions Tsunami - unclaimed possessions

Tue, 23 Dec, 2014 - (2:23)

Images of November Images of November

Tue, 02 Dec, 2014 - (0:30)

Images of October Images of October

Mon, 03 Nov, 2014 - (0:57)

The world in a city The world in a city

Fri, 31 Oct, 2014 - (1:30)

Real-life superheroes Real-life superheroes

Tue, 28 Oct, 2014 - (1:44)

Dance of the northern lights Dance of the northern lights

Mon, 20 Oct, 2014 - (1:08)

Images of September Images of September

Thu, 02 Oct, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, 05 Sep, 2014 - (2:05)

Burning Together Burning Together

Mon, 01 Sep, 2014 - (2:23)

Oddly Enough »

Robots dance in mass-games fashion Robots dance in mass-games fashion

Wed, 21 Jan, 2015 - (1:30)

India has most of the world's tigers India has most of the world's tigers

Wed, 21 Jan, 2015 - (1:22)

Cat saves abandoned baby Cat saves abandoned baby

Tue, 20 Jan, 2015 - (1:09)

Pope Francis - the musical Pope Francis - the musical

Sat, 17 Jan, 2015 - (1:35)

Google partners with auto suppliers on self-driving car Google partners with auto suppliers on...

Thu, 15 Jan, 2015 - (1:32)

Dateline Asia »

Asia markets toast ECB stimulus Asia markets toast ECB stimulus

Fri, 23 Jan, 2015 - (1:42)

Asia Week Ahead: Markets await Greece vote Asia Week Ahead: Markets await Greece vote

Fri, 23 Jan, 2015 - (1:18)

Netflix to push play in China Netflix to push play in China

Thu, 22 Jan, 2015 - (1:41)

Japan in a tight spot over hostage crisis Japan in a tight spot over hostage crisis

Thu, 22 Jan, 2015 - (1:05)

Behind the pretty face of K-pop Behind the pretty face of K-pop

Thu, 22 Jan, 2015 - (2:09)

Record slowdown in China's economic growth Record slowdown in China's economic growth

Tue, 20 Jan, 2015 - (1:52)

North Korean defector changes his story North Korean defector changes his story

Mon, 19 Jan, 2015 - (1:03)

China stocks hit by credit crackdown China stocks hit by credit crackdown

Mon, 19 Jan, 2015 - (1:16)

Xiaomi smartphones look to go global Xiaomi smartphones look to go global

Mon, 19 Jan, 2015 - (1:54)

Clamping down on China's toxic toys Clamping down on China's toxic toys

Fri, 16 Jan, 2015 - (1:11)

In China, a new a challenge to Apple In China, a new a challenge to Apple

Fri, 16 Jan, 2015 - (1:09)

Reuters Investigates »

Where the sea is closing in Where the sea is closing in

Thu, 20 Nov, 2014 - (3:41)

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, 19 Feb, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, 10 Jan, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, 29 Aug, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, 29 Aug, 2013 - (13:22)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, 05 Aug, 2013 - (1:36)