Purchase Date: May 8th, 2017
Purchase Price: $23.09
Current Price:[stock_ticker symbols="TWLO" show="name" static="1" nolink="" speed="10" class=""]
Why We Like Twilio
Have you ever received a text or app notification from Uber, Facebook, or WhatsApp? Congratulations, you have interfaced with Twilio (NYSE: TWLO), the 900 pound gorilla in the rapidly growing SMS and app notification space.
Not only are they the Kleenex at what they do, they’re making an absolute killing in the process, most recent gross margins were over 57%.
So why did this stock get hammered? They announced that Uber is building their own app notification infrastructure, which will take away a significant part of their business. Twilio warned about how concentrated they are with their top 3 customers – Facebook, WhatsApp, and Uber, and Uber drew first blood with this announcement.
But here’s the deal – not everyone has a $68 billion valuation and an army of engineers like Uber does, and Twilio is seizing on smaller businesses to diversify from their concentrated customers. Although they are not profitable, their margins are as high as Google, and they are reinvesting to grow at scale.
Finally, their culture is excellent. Their rating on Glassdoor is 4.2/5, with 92% approving of CEO Jeff Lawson.
Twilio has built an incredible toll-road and has only a $2.2 billion market cap to show for it. Stocks like this will be volatile by nature, but the end game for this business looks incredible.