Image source: Twilio Inc.
What: Shares of Twilio Inc. , a cloud-based communications company, cannot be stopped and cannot be contained! After surging 92% this past Thursday after the company's IPO price was apparently much lower than investors were willing to fork over, shares closed just under $29 on Thursday. Now, despite all the doom and gloom surrounding the markets after the Brexit debacle, shares of Twilio are at it again, rising another 15% in morning trading today.
So what: Part of the driving force behind today's surge, in addition to a rebound from a couple of days of weakness due to the Brexit, is likely Jim Cramer's commentaryon the stock. It's easy to buy into the story of Twilio, especially when you glance at the list of its customers, which include household names such as Uber Technologies and Facebook's WhatsApp.
Twilio enables software and app developers to communicate with users quickly and effectively -- think retailer Nordstrom being able to text customers with a deal to bring them back into the store. The company has more than 28,000 active customers and posted an 88% rise in revenue in 2015, compared with the prior year.
Now what: It's a very interesting company and stock, and a growth story that is easy to buy into as the world we live in becomes increasingly connected through mobile devices, and as marketing needs to connect with consumers more quickly and effectively. While the story is intriguing, and there's definitely been enough hype to send Twilio's stock soaring since its IPO, investors need to be aware the company isn't yet profitable, and tech companies carry a huge risk relative to the reward possibility -- so invest accordingly.
The article Twilio Inc.'s Stock Rises Another 15% -- 2016's Best IPO? originally appeared on Fool.com.
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