Yes, earnings season is upon us. As usual, the banks kick it off the first week with J.P. Morgan and Citi beating both top and bottom-line expectations this morning. The Market is flat this morning with the Nasdaq barely green.
This stock talk is well overdue, especially after having a HUGE day yesterday… Twilio. Twilio is a communications platform as a service (CPaaS). For example, The popular messaging app, GroupMe uses Twilio’s text-messaging product to deliver group chats.
75% of Twilio’s revenue comes from usage fees such as call minutes and text messaging.. the rest comes from monthly rental fees.
With the lack of Capex, these service companies are able to acquire or add-on companies quite easily, and yesterday it was announced that Twilio was going to acquire Segment for $3.2B. Twilio acquired SendGrid in 2018, which offers companies a cloud-based service for sending emails at a large scale (We almost used SendGrid).
Like other tech companies, Twilio’s been killing it during the pandemic… if you can afford $338/share go for it. It is a bit overvalued, but at this point what tech stocks aren’t?