Twilio is down a lot today. Only news I can see is that maybe Amazon is getting into the communication business that would compete with Twilio. This would be bad, real bad. Anyone see news that is not rumor on this topic.
See post 26497 for one analysts view.
A fellow posted this on the Rule Breakers TWLO board:
Twilio is down 7% since AWS announced Amazon connect. Benzinga and others were quick to label this as the end of Twilio. Apparently Amazon Connect is 40% cheaper than Twilio, or whatever. Now, I just found out that the CEO of AWS and the CEO of Twilio are best buddies. Andy Jassy (CEO of AWS) was the best man at Jeff’s wedding in 2009, and both are Jewish. Now, I don’t know about you guys, but AWS and Twilio will be extremely interconnected, especially due to the relationship between Jeff and Andy. The more Amazon Connect grows, the more Twilio will grow. I am Jewish as well and I know what Jewish bond means in business, Andy will never turn against Twilio. Today at $27.55 I have increased my Twilio position to 20% of my portfolio, which makes my average price now around $31.85.
I don’t know enough to necessarily endorse it, but it was interesting. The poster certainly has confidence – a 20% position in TWLO scares me just reading it.
For me, seems like there aren’t many ideas I’m interested in that are more volatile than TWLO. Yet the potential is great. I’m comfortable with my ~5% position, but I don’t plan to add to it.
This is the article in Post 26497:
“How Amazon’s Connect Could Impact Twilio, Zendesk, RingCentral”
Strange. I read the article as being a positive for Twilio. The article states:
Benefits For Twilio
“We suspect Amazon is leveraging Twilio’s platform (along with other communication platform vendors) to deliver its contact center telephony services, which should expand Twilio’s relationship with Amazon further,” the analyst said.
Twilio already supports Amazon’s Simple Notification Service, while being an AWS (Amazon Web Services) customer.
Suri expects Twilio to incorporate intelligence into phone calls to offer a more personalized service, while also sending post-call SMS messages for feedback.
“Overall, we view this expanded relationship positively and it further solidifies our view that Twilio will continue to be used if and when Amazon rolls out additional UCaaS features/functionality in the future,” the analyst went on to say.
How that causes a 5% drop I will never know…
I’m not sure there is a “reason” for today’s drop. Well, of course, there is a reason. There were more sellers than buyers today. However, I don’t know there was a reason for that.
TWLO is going to be volatile. I’m a buyer at these prices as this is about where I’ve bought most of my shares. I was strangling TWLO for some time and may write a put at these prices as well. The volatility has certainly paid well (sorry for the optionspeak Saul).
Isn’t AWS part of Amazon? And so the “CEO” of AWS answers to the CEO of Amazon, regardless of his religion or ethnic background.