The Twilio stock price recently hit an all-time high of $23.79, up from its IPO price of $15 per share and up from its first day’s closing price of $20. As the company grows and invests more heavily in R&D, investors want to know what the future holds for Twilio’s stock price. Here are four reasons you should care about Twilio’s stock price in the long term.
Before you read this
Two weeks ago, the stock price for Twilio Inc., one of the fastest-growing companies in Silicon Valley, fell by 12%. Let’s talk about what this might mean for the company, and how it can affect you.
Twilio is a company that is continuing to grow at an exponential rate. With such a high growth rate, there are always going to be some bumps along the way with the stock price. However, I believe that Twilio will continue to grow exponentially over time and you should keep investing in their stock!
There are many reasons that I believe in Twilio stock. Some of them include a constantly growing customer base, competitive advantage, and one-of-a-kind services. All of these factors come together to make me feel like owning stock in Twilio is not only wise but necessary. And because it has been beaten down from 12% overnight, now is the perfect time to invest!
Whether you have an interest in technology or you’re a regular investor, now is your chance to invest in one of Silicon Valley’s hottest companies! Buy some stock today and profit from Twilio’s success tomorrow.
If you aren’t already invested in Twilio Inc., then read on! If you’re interested in investing because of these reasons, keep reading – I’ll lay out how all of them are true and why I’m confident that there will be no other stock quite like it for years to come.
And that’s where I’ll end it. I hope that you will take some time to read more about Twilio, Inc. and how they are revolutionizing communication. If you decide to invest in them after reading through my work, go right ahead! If not, don’t let that stop you from becoming a part of history – or at least getting in early with one of Silicon Valley’s most exciting companies right now!
How does Twilio make money?
What sets Twilio apart from many competitors is that it is a publicly-traded company on the NYSE, not a private company. This means that any shareholder of the company has an impact on how the company operates. To understand how to invest in Twilio as a shareholder, let’s take a look at what it does and why people might be interested in investing.
The bulk of Twilio’s revenue comes from calls made between businesses and their customers. For example, let’s say you have a pizza shop, and you want to be able to reach your customers via SMS. To do that, you would need to buy credits from Twilio—if a text message is one credit, then sending 10 text messages will cost you 10 credits.
There are three ways that businesses pay for these credits. For the first model, companies can select a package deal, in which they get a certain number of credits each month and pay a fixed price per credit. For example, if you have 1,000 credits available and select a $10/month package deal (which comes out to $0.10 per credit), you will be charged 10 cents whenever you use up 1 of your 1,000 credits.
The second model lets businesses pay for credits on a per-user basis. For example, if you have 1,000 credits and make 10 text messages, you would be charged $0.10 per credit used—$1 in total. This model is ideal for businesses that know their call volume in advance, but don’t want to commit to using all of their credits at once.
The third model is an enterprise package, which allows businesses to reserve a certain number of credits each month, and lock them in at a set price. This helps larger companies to manage their costs and predict their expenses better. As mentioned above, all three models provide users with complete control over how they use their credits—and Twilio makes money by charging businesses when they need more calls or messages than they’ve paid for.
So what are investors worried about?
The end of last year brought with it some unfortunate news for investors in the Twilio Corporation. Not only did they lose money on the stock market, but they also saw their CEO make a hasty exit. Despite this setback, there are plenty of reasons why Twilio could prove profitable for people that are investing now or who are looking to build a career at this company.
All of these concerns are valid. Investors in Twilio stock have seen their shares lose value and their CEO leave, both in a matter of days. These types of events can unnerve any investor who is only looking at short-term returns. But when you look at Twilio’s long-term prospects, you start to see an opportunity.
One of the biggest problems with SMS messaging is that not all messages get delivered reliably; they get lost in transit. It turns out that this problem might be just what Twilio needs if it wants to diversify its offerings and provide more reliable customer service.
While it is true that any investor needs to be concerned about their portfolio and return on investment, there are many reasons why Twilio stock could still prove profitable for investors in both 2016 and beyond.
How did everyone do? Any questions about how these topics work?
Freeform writing here. Explain why you know there are many places to get SMS with Twilio and not many that provide reliable data services or instant connections between social media channels.
If we’re looking at what Twilio does well – providing support for businesses through instant connectivity across various platforms – we see that their business model seems to depend on constant growth. With companies like Facebook offering Facebook Messenger, Skype, and Google Hangouts alongside other chat programs, Twilio will need to adapt quickly if they want to continue providing revenue streams in this space.
What does this mean for you as an API user?
Recently, Twilio Inc.’s stock price skyrocketed in the past week. This may not be relevant to many API users, but if you work for or are interested in working at Twilio, it is important. A rapidly growing company typically offers better long-term investment opportunities and job prospects than a stagnant company. If you’re thinking about starting a career in the tech industry and live anywhere near Seattle, I recommend going to their careers page.
What does that mean for you as an API user?: Although we at ProgrammableWeb are focused on providing information to developers, making software easy and enjoyable to use is just as important. If you’re interested in learning more about how Twilio can help your business or startup, check out their product page or request a free trial account.
What does that mean for you as an API user? Why should you care about Twilio’s stock price?
There are two main reasons:
- It could have an impact on Twilio employee compensation packages, meaning they might have to start looking elsewhere for jobs;
- If Twilio is struggling financially, they might make changes to their API–changes that would reduce the ease of use of their platform.
If you’re an API developer, this means any application using Twilio services might no longer be able to function as intended. And if you want to learn more about what it means for you as an API user, feel free to reach out by commenting below or sending me a message via Twitter @twilipro.
What does that mean for you as an API user?: So how do you make your software easy and enjoyable to use? At ProgrammableWeb, we encourage developers to make use of resources available to them, including our Swagger-based documentation.
What does that mean for you as an API user?: Why should you care about Twilio’s stock price? First, it may affect employees’ compensation packages and second, it might result in API changes which will likely make development easier if you’re still unsure why you should care about Twilio’s stock price, comment below or tweet @twilipro.
What does that mean for you as an API user?: Whether they’re a developer working at Twilio or someone who just wants to see what we have to offer, I recommend browsing through our documentation. If you run into any trouble with your code and are looking for additional help, feel free to reach out by commenting below or sending me a message via Twitter @twilipro!