The general consensus on TWLO is very bearish since the secondary offering and announcement that Uber will be using their product less, with short float at over 50% according to finviz. This is despite a solid (imo) Q2 report, which reported higher than expected user growth, revenue growth, and a very respectable 55% base revenue growth yoy. The stock did make a strong gain after the earnings but has since fallen back to it's price before the earnings report. There seems to be very strong resistance in the 35 range, however if TWLO has another strong quarter in Q3, I could see it breaking through 35 and causing a big short squeeze.
But technicals aside, I am under the impression that TWLO is the market leader in it's niche (and arguably small) market of cloud services for texting and calling. They definitely seem to have the highest revenue of all of it's competitors. Also TWLO seems to be nearing profitability at an operating margin of (14.9%), which is actually better than a lot of similar market cap tech companies displaying the same level of revenue growth (with operating margin improving each quarter).
My personal thoughts are that TWLO got overhyped and shorts realized and took advantage of the secondary offering to drive the price down, but I think if TWLO builds off this Q2 and delivers a strong Q3 and Q4 to close out the year, the company could decrease short interest a lot and become a bull story again. Any other thoughts?
Submitted August 23, 2017 at 02:36PM by fuck251 http://ift.tt/2xd7x4x
