![]() The company disclosed its IPO plans last March then delayed the offering until this year. Even at its $14 a share offering price, Box was priced at 9 times its revenue.įinally, in a stock market where the most coveted private tech companies are delaying IPOs, Box’s approach to the public market had more than its share of glitches. Box’s market value of $2.2 billion is equal to 11 times its revenue over the past 12 months. Without profits, defenders point to the price-to-sales ratio but even here Box’s valuation is high. To ensure his privacy, Facebook CEO Mark Zuckerberg bought four of his neighboring houses in 2013 for an estimated $30 million-plus in Palo Alto, California. David Paul Morris-Bloomberg/Getty Images Mark Zuckerberg Robyn Beck-AFP/Getty Images Richard Bransonįounder of Virgin Group, comprised of more than 400 companies, Branson has invested heavily in spaceship tourism with the SpaceShipTwo vehicle. The company created the first mass-produced, highway-capable electric car and is valued at over $18 billion. PayPal Co-Founder Elon Musk (in driver's seat) began as a Series A investor in 2004 and is now the CEO and chief product architect of Tesla Motors. Pius Utomi Ekpei-AFP/Getty Images Elon Musk In total it has issued grants adding up to over $30 billion. Since 2000, Gates and his wife have been running the Bill and Melinda Gates Foundation. The former Microsoft CEO is currently the richest man in the world, according to Bloomberg. ![]() There they fund a "theme camp" and how exactly the funds are used is left up to participants' imaginations. Google CEO Larry Page and co-founder Sergey Brin have been attending the Burning Man Arts Festival since the company's early days. ![]() He is turning it into a "model for sustainable enterprise," he's said, though details remain sketchy. Outgoing Oracle CEO Larry Ellison owns 98% of the 141-square-mile Hawaiian island of Lanai, which he bought for an undisclosed price. In 2014, former Microsoft CEO Steve Balmer spent $2 billion to become the owner of the NBA's Los Angeles Clippers. Ed Oudenaarden-AFP/Getty Images Steve Ballmer Jobs spent approximately $131 million on it but passed away in 2011 before it was completed. The Apple CEO's super yacht Venus was designed by Philippe Starck's design company Ubik. See How Tech CEOs Spend Their Money Steve Jobs In the most recent quarter, net loss grew by 21% from the previous quarter, nearly double the 10% growth in revenue for the same period. But that may not happen as quickly as some expect. The hope is that as Box grows, losses will keep declining and eventually disappear as the company pushes into the black. Net loss totaled $129 million in the nine months through October, down from $125 million in the year-ago period. First there are the losses, shrinking but still substantial. The bear case on Box is easier to articulate and so it may be gaining the upper hand among investors right now. It has one of the most respected young CEOs in Silicon Valley, influential partners and blue-chip customers but it’s toiling in a market that’s fragmented, changing quickly and growing more competitive by the week. The thing is, the outlook for Box is devilishly hard to predict because it’s a grab bag of challenges and opportunities, of promise and peril alike.īox is a company growing revenue by 80% a year but it’s lost in aggregate nearly half a billion dollars, mostly on sales and marketing costs to win customers. The success of Box’s IPO isn’t important just for the company’s shareholders, buy for other tech companies – especially those in the enterprise market – planning on going public in coming months. It only took Box a matter of days, not months. Most tech IPOs that start out the gate overvalued yet with momentum behind them are as a rule trading significantly below those initial highs several months later. The first-day pop is both an honored Wall Street tradition and a sucker’s bet that individual investors keep falling for. In the six trading days since then, it’s lost more than a quarter of its peak value, closing just above $18 a share on Monday. 22, Box saw it stock rise as much as 77% on its first day of trading.
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