The Biggest Risk to Twilio Inc. Stock

Twilio finally public

Cloud communications platform Twilio (NYSE:TWLO) went public on June 23, raising $150 million and booking a first-day gain of over 90% from its IPO price of $15. The stock dipped slightly during the post-Brexit sell-off, but subsequently recovered and soared to the low $30s.

The platform

Twilio’s platform enables developers to create apps that can interact with customers through messages, video, and voice. Major customers include Facebook‘s (NASDAQ:FB) WhatsApp, Uber, and Airbnb. By connecting apps to mobile networks, Twilio’s service lets WhatsApp users look up users through phone numbers, and enables Uber passengers to call or text their drivers. Thrivent Asset Management analyst David Rudow recently told the Wall Street Journalthat Twilio “absolutely revolutionized” the way apps were built, since it would be tough and costly to build those services from scratch.

Investors in this hot tech IPO should notice the elephant in the room.

Source: The Biggest Risk to Twilio Inc. Stock — The Motley Fool

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