I sold TWLO at a loss after the last quarter results were released. It was reported that their biggest customer, Uber, would start multi-sourcing and developing some work that TWLO was handling in-house. The stock bottomed in the mid-20s and has in the past few days run up from the high-20s to over $31. A lot of tech companies have also been rising so TWLO is again participating in the tech rally. I have been wondering if Uber has made much progress on taking much work that TWLO handles in-house. Uber may well be distracted by the management problems. We will find out on August 7th when TWLO reports results. I expect that TWLO will continue to rapidly grow their non-huber business. It’s also possible that TWLO’s Uber business may be higher than expected. I’ve been tempted to nibble again but haven’t yet…
Rather than sell at a big loss, I held onto TWLO with the belief that the uber issue was an over reaction (aren’t most market reactions OVER reactions?) and it has since recovered 40% in less than three months. I’m now slightly above my buy-in basis.
At the moment, guidance doesn’t appear particularly rosy, but it appears that non uber market still has promise.
Any input from the more experienced participants (investing experience/lessons you’ve learned) would be appreciated. Do I sell at this latest bump and count my blessings or hold on for growth that might (or might not) be a quarter to two away?
FYI: It’s a medium/small piece of my portfolio.
I have a starter position at 30.74 and got hit by the UBER news last Q. I didn’t add on the drop because I want to see how this Q is reported. If growth ex UBER continues, I will add to my position.
If not I will exit. I do think not a lot of TWLOs customers have the capacity to create their own worldwide network as UBER is apparently trying to do. For smaller companies I don’t think the ROI would be attractive to do so.
got hit by the UBER news last Q. I didn’t add on the drop because I want to see how this Q is reported. If growth ex UBER continues, I will add to my position.
I tend to agree that waiting for the June quarter results is a good choice. The “bad” news is out. The good news that the result of their business (non-Uber customers) is growing well did not prevent the sell-off. So perhaps continued good growth from non-Uber customers will not move the stock yet give us a good opportunity to get back in or add.
more in general, do you sell based on quarterly results? maybe those start-ups(still not making money small cap) may need a bit more time before you can see it go more definitely in one direction or the other. so instead of looking at it over one quarter or two, we need to look at it over several years…
Uber will still be a customer but not as big as before. Wouldn’t that be a plus rather than a negative? unless you think there isn’t much demand for Twilio’s offering?