Dropbox has been on a wild ride, and one market watcher sees it surging nearly 40 percent

Dropbox is set to report its second earnings report as a public company on Thursday after the closing bell, and some see a buying opportunity afoot.

Shares of the software and cloud storage company are up 11 percent since the initial public offering in March, but the ride hasn't been entirely smooth. The stock is down 28 percent since its all-time high hit in June.

Still, according to Boris Schlossberg, managing director at BK Asset Management, the stock is a buy in the long run. Here's what he told CNBC's "Trading Nation" on Wednesday.

• Dropbox is the dominant storage provider for consumers and businesses, with more than 11 million subscriptions worldwide. Its move in adopting shingled magnetic recording technology in June gives it a competitive edge.

• Although Dropbox could be dismissed as a "consumer" offering rather than an enterprise product, it's precisely the consumer-friendly aspects that make the product compelling.

• Its clean user interface is another plus, and it could benefit from participating in the subscription-based economy. Subscription growth will be key to watch in its earnings report on Thursday.

• The stock is now at the lower end of its trading range but could touch its post-IPO high of around $43 per share. This would represent an increase of about 36 percent from Wednesday's closing price.

Wall Street analysts are expecting earnings of 6 cents per share, according to FactSet data. Dropbox shares closed slightly higher on Wednesday.

Bottom line: Dropbox shares have had a bumpy ride since the stock's debut in March, but Schlossberg is bullish heading into its quarterly earnings report on Thursday evening.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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