Long Position on TWLO @ $96.50 on 12/13/2018 (Momentum)

Twilio Inc. (TWLO) provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally.

The company's programmable communications cloud provides a set of application programming interfaces that enable developers to embed voice, messaging, and video capabilities into their applications. 

Additionally, the market in which Twilio operates has a huge growth potential. The company’s main business, Programmable messaging, is likely to witness tremendous growth as the global Application-to-person (A2P) SMS market is anticipated to reach $86.53 billion by 2025.

In October, SendGrid (SEND) announced it was being bought for $2 billion by Twilio, a bigger digital marketing tech company based in San Francisco that focuses on text messaging. Twilio makes software for secure messaging platforms, while SendGrid (SEND) sends mass emails for clients and has since expanded to offer more email marketing services. When combined, officials from both companies, say it presents a “massive opportunity” to become one of the top service-as-a-software (SaaS) companies in the world.

TWLO shares have formed a bullish "double bottom" and are expected to move higher from this formation.

Entry Point: $96.50

Stop Loss: $91.70

Trading Range: $23.25 - $100.47

Target Price: $106.15

Updates

1/31/2019 10:42:45 AM

TWLO closed at $112.97

Position closed on 1/31/2019 at price of $112.97 with a 17.07% gain in 49 days.

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