Shares of Dropbox (NASDAQ:DBX) surged 9.7% after reporting strong Q3 financial results. Revenue was $634.4 million, beating analyst forecasts. Adjusted earnings were $0.74 per share, exceeding expectations by 14.1%. Operating margins expanded to 27.5%, up from 20% last year. The company generated $293.7 million in free cash flow. Despite a slight decline in paying users, investors focused on the strong bottom-line performance. Shares closed at $30.86, up 7.5% from the previous close. Dropbox is up 4.4% YTD and trading near its 52-week high of $33.27.

The market sees Dropbox’s news as significant, despite only 4 moves greater than 5% in the past year. The last major move was a 3.3% drop due to trade war fears. President Trump threatened to increase import taxes on Chinese goods, causing major indices to tumble. Investors sold off stocks, especially in tech and retail sectors. Dropbox is a profitable growth stock, trading at $30.87 per share.

Investors who bought $1,000 worth of Dropbox shares 5 years ago would now have an investment worth $1,646. For more stock picks in booming industries like AI, check out the FREE under-the-radar growth stock identified by stockstory.org.

Read more at StockStory: Why Are Dropbox (DBX) Shares Soaring Today