Another big mutual fund has cut the valuation of its holdings in Dropbox — this time by more than 50% — showing the declining investor confidence in the cloud file-sharing company.
According to The Information’s Alfred Lee, T. Rowe Price marked down its holdings in Dropbox by 51% in the fourth quarter of 2015, the first time its cut down its share value in the company.
The report said the mutual fund valued Dropbox shares at $9.40 per share as of December 31, citing a portfolio holdings report released last week. That’s down from the $19.10 share price it paid in its last funding round in 2014, when Dropbox was valued at $10 billion.
This is the latest in a string of write downs Dropbox shares have faced lately. Previously, it was reported that Fidelity and BlackRock each marked down its shares to $13.50 and $12.38 per share, respectively.
The report said it’s unclear what exactly prompted the markdown, but it could be due to a variety of reasons, including “new rounds of financing, the company’s financial and operational performance, strategic events impacting the company,” citing T. Rowe’s spokesperson.
As Business Insider has reported previously, Dropbox has been struggling to establish a business model that justifies its latest $10 billion valuation. Most recently, the company shifted gears towards the enterprise market, where its service would be sold to businesses, instead of just regular consumers.
Dropbox wasn’t the only company to see its shares marked down by T. Rowe Price in the last quarter. MongoDB lost 44% of its value, while Apptio and Evernote each lost 25% and 20% of its share value, according to the report.
But some of the bigger startups, like Uber, Airbnb, and WeWork, all saw its stock value up or unchanged, the report said.
We’ve reached out to Dropbox for comment and will update this story when we hear back.