Let's Analyze: Twilio Inc. (TWLO)

Overview: Twilio Inc. (TWLO) provides a cloud-based communications platform that enables businesses to embed messaging, voice, video, and authentication capabilities directly into their software applications. The company's platform allows developers to build and manage applications without the complexity of creating and maintaining underlying infrastructure.

Bulls Say

  • TWLO's platform can be applied to a diverse array of companies and industries, giving the company exposure to secular growth trends like e-commerce, remote learning, and telemedicine
  • Customer retention rate is an outrageously high 97%, implying those companies who start using TWLO's platform are unlikely to switch
  • The company acquired customer data platform Segment, which should help developers unify customer data across multiple touchpoints

Bears Say

  • TWLO is starting to compete with established competitors like Salesforce (CRM), Oracle (ORCL), and SAP (SAP), all of which are willing to spend...

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