With the recent Box IPO, there are many people who have mixed feelings on the potential of the company. There is no question that they have done a great job of land-grabbing in the competitive and emerging market that is cloud storage. The uncertainty about the company comes from the fact that they are burning money at a rapid pace. This has made a lot of potential investors and public shareholders uneasy about the future of the company. The current burn rate is something that will require a big switch in mindset to slow down.
As of right now (3:30pm day of IPO) the stock is performing well and is up 70% from their initial price. Here is a great video where Box CEO Aaron Levie goes into the economics behind Box and why he feels everyone shouldn’t worry too much. It’s definitely a video that should come in handy when making a decision about the company. From his point of view the money that the company is spending to accelerate growth is manageable and will result in them turning a profit once they have reached a market share that is closer to their goals.