TWLO - amazon competition

I don’t own TWLO, but was looking for an opportunity to buy when I saw the stock quickly drop this afternoon. The cause of the drop was that Amazon announced 2-way text messaging within AWS.

https://seekingalpha.com/news/3297695-twilio-drops-amazon-an…

I don’t know this company that well but like their non-Uber growth. How damaging is this Amazon news?

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there is a comment beneath that SeekingA article that the “Twilio CEO just confirmed that Amazon’s new service is using Twilio”. Now that would be a relief for TWLO shareholders that Amazon is a partner not a competitor

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That comment appears to be correct. Jeff Lawson (TWLO CEO) tweeted the following:

Excited that @twilio is now helping to power engagement on @AWS Pinpoint, with their launch of 2-way SMS!

https://twitter.com/jeffiel/status/912775401084035072

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Twilio does not make money off these simpler functions. Kind of like the hardware for Nutanix. Where Twilio is trying to make money are the features built on top of these simple and basic features.

The way it was worded by Jeff Lawson, it sounds like to me this is going through Amazon, but Lawson is excited because this may cause more customers to then want to use Twilio tools to elaborate on the basic functionality. And that would be using Twilio tools, and thus paying Twilio for the value add.

Tinker

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"…Where Twilio is trying to make money are the features built on top of these simple and basic features.

The way it was worded by Jeff Lawson, it sounds like to me this is going through Amazon, but Lawson is excited because this may cause more customers to then want to use Twilio tools to elaborate on the basic functionality. And that would be using Twilio tools, and thus paying Twilio for the value add."

would AWS developers and Amazon use Twilio to implement those add-on features?

is Amazon buying anything from Twilio?

tj

tj,

Amazon uses some Twilio functionality for portions of its product. For others it does not. Two way SMS is a commodity product with many vendors. What Twilio gets from Amazon is preferred vendor for providing value added tools.

What Amazon gets from Twilio is the ability to offer Twilio tools to enable its customers to better satisfy their more sophisticated needs without having to leave Amazon.

Synergistic. When you are talking $.005 or whatever per text or per minute, you are talking massive numbers of texts and minutes to make any difference. So how much money this ends up producing, I have not a clue. But it must be something if Amazon is bothering to dicker with it.

Tinker