Answering a caller’s query about Box, Inc. (NYSE:BOX) during the lightning round of Mad Money on September 3, Jim Cramer commented:
Box is finally, after multiple years, it is finally breaking out. It has good storage. People like storage. It’s got a good CEO in Aaron Levie. It’s just never been exciting to people. It’s finally starting to get some mojo. I think it’s okay to own. It’s done nothing for years.
Enterprise Momentum and Financial Results
Cramer’s perspective highlights a shifting narrative for a cloud pioneer that has historically traded in a tight range. In its fiscal second-quarter 2027 report, Box, Inc. posted revenue of $321.1 million, marking a 9.2% year-over-year increase that topped Wall Street expectations by over $2 million. Adjusted earnings per share reached $0.40, in line with consensus forecasts, while management raised full-year revenue guidance to approximately $1.29 billion. The core demand is supported by expanding adoption of higher-tier Box Suites, which now account for 69% of revenue, along with early traction in AI-driven document tools that help enterprises modernize legacy storage workflows.
Competitive Pressures and Structural Headwinds
Despite recent top-line acceleration, Box, Inc. operates in a fiercely competitive market dominated by massive tech ecosystems like Microsoft OneDrive and Google Drive, and other specialized rivals such as Dropbox. While quarterly growth has stabilized, Box’s multi-year annual growth rate has historically lagged behind high-flying software peers. Furthermore, Box still needs to sustain its recent growth acceleration while investing in AI capabilities.
Institutional Ownership and Short Positioning
As per Insider Monkey’s data of over 1000 hedge funds, 37 hedge funds had a stake in Box, Inc. in Q2 compared to 36 in Q1, highlighting steady institutional backing from long-term asset managers. Arrowstreet Capital remained the company’s top hedge fund holder in Q2 with 4.3 million shares. Additionally, it is worth noting that another significant shareholder, Citadel Investment Group increased its position in the stock by 60% to over 3.7 million shares. The short percentage of float sits at 14.26%, which shows a notable segment of the market remains unconvinced about the sustainability of the breakout.
Box, Inc. is finally gaining traction as enterprises lean into secure cloud storage and workflow automation, though lingering questions about long-term growth keep some investors cautious. While the stock has spent years moving sideways, Cramer believes it is okay to own this steady enterprise player as it starts building momentum.
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