Morgan Stanley (NYSE:MS) lowers its share valuation in Dropbox, Flipkart and Palantir

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Morgan Stanley (NYSE:MS) through its mutual fund has stepped down the value of its shares in a number of startups including cloud storage provider Dropbox. Other than Morgan Stanley, a number of institutional investors have also recently trimmed the value of their stakes in some technology startups. The valuation mark downs could complicate future IPO of the startups as they signal dwindling opportunities in tech startups market.

Stake in Dropbox falls by 25%

Morgan Stanley (NYSE:MS)’s mutual fund Institutional Fund Trust Mid Cap Growth Portfolio trimmed the value of its shares in file storage startup Dropbox by 25%. Other investors that also recently revalued their stakes in Dropbox are T. Rowe Price and Fidelity.

On its part, T. Rowe Price trimmed the valuation of its stake in Dropbox by more than 50%. On the other hand, Fidelity lowered the valuation of its shares in Dropbox and other startups. Besides Dropbox, Fidelity also slashed stake valuation in other tech startups such as Zenefits and Snapchat.

Morgan Stanley’s stake valuation in Flipkart falls

Morgan Stanley (NYSE:MS)’s mutual fund also cut the valuation of its stake in India-based e-commerce startup Flipkart to $103.97 a share. At the price, Morgan Stanley’s valuation in the company is 27% below the startup’s valuation after the most recent funding round.

Stake valuation in Palantir falls 32%

Morgan Stanley (NYSE:MS) recently marked down the valuation of its shares in data analytics company Palantir. That means that Morgan Stanley’s stake in the startup is now valued at $45 million, suggesting a valuation of $7.70 per share as opposed to $11.38 per share that the startup rose to following its most recent fundraiser.

The trend of investors trimming the valuation of their tech startup investment complicates the picture for the entire startup world. Investors are getting the impression that all is not well in startups and that could temper with the future IPOs of the startups as investors struggle to value them. Perhaps startups that might have smooth listing are those that already generate solid revenues and profits.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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