For those still holding TWLO after hours the CEO disclosed a purchase of 100,000 shares at a cost between $22.96 and 23.76/ share. Could give a pop to the shares tomorrow in a benign tape.
Rob
5 Likes
I do appreciate the gesture, but it is .46% or so of this net worth. It is like someone who is worth $100k buying a new midlevel Windows laptop (not a MacBook Air as that would run .7% of net worth, at its cheapest for a MacBook Air).
Just dropping the cynical. I do believe it will cause a spike in shares. Maybe turn the tide. Perhaps turn the tide and provide an outlet for those who want to sell. Perhaps it will create new confidence. In the end, it will all come down to real fundamentals. Ive had my say on that with Uber choosing to use TWLO as just another vendor, and not THE vendor.
We are told that firms want to multi source. Sure, sure, but if you are invested in a company, you want to be in a company that is too much in demand to not the THE company.
NVDA and INTC come to mind as examples. So much for multi-sourcing when each company has 70% or more of their markets that they participate in, despite their customers preferring, I am sure, to multi source and not give so much power to their vendors.
Twilio does not appear to be that sort of vendor anymore.
Thus, I have personally lost interest in it. However, yes, the valuation is much cheaper, the business is still an excellent business, and the returns may still be stellar. I am simply not interested in investing in just average businesses.
Tinker
3 Likes
I am with you. TWLO and TTD are two stocks I like before. TWLO has a second offering at $40 now $24. TTD had secondary at $35 now $52. Which one would like to hold? I am with TTD as it shows the team can execute and their business model has much wider moat. I actually think TTD could be next SHOP based on their growth momentum, CEO quality and mass TAM.
I liked TWLO before and still own it. I have a stop loss at $20. I only have a starter position so if hit a minor nuisance. Unless the s/l is hit , my strategy is to hold through the next earnings report.
If their growth (ex UBER) continues I will continue to add until a full position is established. I own CRTO so have some exposure to what TTD does. Some of my position was assigned as I had written covered calls on a portion. Perhaps with that money I could put into TTD on a pullback.
Rob
I own CRTO so have some exposure to what TTD does.
Can you explain this a bit more? I’m getting ready to look compare CRTO and TTD. Are you suggesting they are complimentary or competitors? Just wanted to know your take.
I view them as competitors upon a cursory glance.
Thanks for any further insight.
A.J.
I view them as competitors also.
Rob