>> A strong showing for Dropbox as the Cloud storage company made its trading debut in NASDAQ. The stock, which begin trading Friday under the tickered DBX, opened at $29 a share. That's up nearly 40% from the $21 IPO price investors paid Thursday. Now Wall Street will be watching to see if the first big tech IPO of 2018 can hold up after big names like Snap and Blue Apron failed to meet expectations.
Reuters Leona Baker is on the story.>> So there's a lot of excitement today on IPO day since the stock is up so much. But it's gonna be up to them to finally turn a profit for the first time, keep their margin up, find new customers. Some say Dropbox is sort of past it's prime, a few years ago was a really hot brand, but now it's facing a lot of competition from Amazon, from Google.
So how do they keep their customer base happy, especially now that they're trying to aim for more paid subscribers and larger corporate accounts.>> While more than 500 million people have signed up for Dropbox, only 2% pay up, which is part of the reason it's not profitable. Meaning investors will be dialing up the pressure for the file sharing company to trim it's losses.
>> A lot of companies maybe aren't willing to pay for this use, because it might be free on other platforms like Google. So that's what they're gonna have to really focus on, which is getting corporate customers to help them generate revenue and keep those margins up so they'll finally turn a profit for the first time.
>> Despite markets taking a nosedive Friday, Dropbox held on to the days gains, ending it's first day up 35%. A promising sign for other high-profile tech companies yet to go public like Airbnb and Uber.