Twilio Inc (NYSE:TWLO) IPO'ed in late June. The company is a cloud communication play that enables developers to build, scale and operate within the cloud on a pay-as-you-go service. The company is not profitable, losing north of $38 million last year. Revenues were in the $200 million range.
The company came to market, trading on its first day around $25 per share. After grinding higher over the course of a month to $45, an explosion has taken place. In the last three trading days the stock has jumped from $43.60 to a high today of $66.40. The market cap of this company is now nearing $6 billion. This is not a small cap, or a thin stock. Volume today is nearing 13 million shares in the early afternoon. Something is out of wack but the recent market activity explains it. When you take away the fear of a stock market drop, prices of stocks will move sharply higher. This happens with the Federal Reserve's constant helping hand. In addition, when you take away any other method of making money (yields at historic lows), investors will find anything to jump into. This is an out of wack market that should scare smart investors. The main problem is, no one knows when a real correction will take place. A day, a week, a month a year? Until reality sets back in, moves like this ins Twilio Inc are likely to continue.
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