Some recent tech IPOs are on a tear, and there's one that has more room to soar

Tech IPOs have been on fire.

Since going public, shares of Roku, Stitch Fix, DocuSign and Dropbox have all soared, rising a respective 399 percent, 193 percent, 48 percent and 25 percent from their IPO price. But after a torrid start, shares of Dropbox have fallen back to earth, with shares flirting with 52-week lows. And one widely followed chart watcher sees that as an opportunity.

"It has a lot of appeal technically as a name that potentially could start to play catch-up," Mark Newton, president and founder of Newton Advisors, said Tuesday on CNBC's "Trading Nation," acknowledging the stock is down meaningfully since its post-IPO high.

Shares of Dropbox, a San Francisco-based cloud storage company, have traded in a volatile range, rising as high as $43 a share in June only to touch a low of $24.78 just last week. Still, Newton prefers Dropbox shares to shares of Roku and Stitch Fix, which Newton said have gotten stretched and are overdone at current levels.

"[Dropbox] has been almost cut in half over the last few months, and really, at current levels, you're starting to see evidence of this stabilizing finally," Newton said.

Dropbox has moved up to the highest close since August, and the charts show that the stock has potentially put in a bottom, Newton explained.

Dropbox shares were trading lower on Wednesday at $26.13 per share.

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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.

Follow Michael Santoli on Twitter @michaelsantoli

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