16 comments

[ 3.0 ms ] story [ 62.7 ms ] thread
Hopefully this'll encourage more startups to IPO.
8 year old company that charges for their service. Definitely some great things for startups to learn here.
How did a stock ticker chart make front page of HN?!

Is harmmonica trying to pump&dump?

I swear, this site is turning me into a grumpy old man...

I was thinking it was odd to submit a stock quote myself, but then I thought this is totally relevant to HN because Twilio's one of the few "startups" (realize it hasn't been a startup for a long while now) that's actually made it public vs the new world order where companies stay private forever. I thought it'd be interesting to get folks' take on how crazy its public valuation is though. Full disclosure: I did buy the stock and I fully expect this to pull back significantly sooner than later, but I can't bring myself to sell it either, which is even more maddening because I think the valuation is crazy and if I was some pundit I'd say "stay the hell away from this thing at this price" (full disclosure part 2: I'm not a pundit of any sort).
I sold all my shares today. I know jack about finance, but my gut said that $60 is too high.
It's hard to say what is post-IPO hype and what isn't at this point.

I'm also very curious what Twilio has on its roadmap -- a post-IPO company is no longer a startup, but the whole concept of making a Python library that sends SMS messages, to me, very much feels like just a startup MVP.

It'd be interesting if they went after cell carriers with WebRTC, but even the WebRTC provider world is a pretty competitive space now with TokBox and Agora.io essentially providing the same value prop with their offerings now.

Me? I just want a China number to send SMS messages from. Get on that, Twilio!

I think that was a smart move. I'm similarly ignorant of the nitty gritty financial details of how stocks end up priced where they are priced, but I do follow a bunch of (mostly tech) companies and more or less invest/gamble on "feel" (ie, do I like and understand what they're doing, how is the stock currently priced, do those high level financial multiples make a little bit of sense against their peers and what's the competition look like). I was buying into Twilio because I'd been following their story for years and just think it's a good, solid business that will be able to grow steadily as a public company, but there's nothing steady about what's happened with the stock price. I want to pull the trigger and get out. Hard part is actually pulling it. Glad to hear you locked in the gain. Maybe you'll inspire me to do that today.
For a bit more context:

Twilio announced its first earnings after the IPO

It's tripled since IPO price of $15

Today they're trading around $48.70

http://amigobulls.com/articles/is-twilio-inc-stock-a-buy-aft...

I don't know anything about IPOs, but isn't that bad for Twilio? They could've potentially made double or triple what they did originally, right?
There are enough moving parts and conflicting incentives within the system that it's unlikely to be that simple. In theory, yes, they may have underpriced their IPO and left some money on the table, but that isn't necessarily the worst thing. In general, it's better to be thought of as a company that's outperformed expectations than underperformed them.
Perhaps, but keep in mind they sold only a small portion (~12%) of the company in the IPO, so the effect on the overall value (and longterm success) was limited.
As of this moment they're at $65.00 (a 22% jump today). I wonder why the sudden price surge?
I invested in a VC fund that bought Twilio in the early rounds. Will I get shares? When will they arrive? Can I short the stock or buy puts in the meantime?
No, never, yes (but that's completely unrelated to your VC fund)
Hey startups going public: Investment banks are screwing you.