Market Overview

What AWS Pinpoint Means For Vonage And Twilio

What AWS Pinpoint Means For Vonage And Twilio
Related AMZN
Analysis: Why New York's Amazon Bungle Is A Big Win For Freight Alley
Amazon Says No Thanks To NYC: What Do The Experts Think?
All Terrain Financial Advisors, LLC Buys Amazon. ... (GuruFocus)
Related TWLO
Q4 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios
Analysts Ride The Twilio Growth Train
Bert Hochfeld On The Investing City Podcast (Transcript) (Seeking Alpha)

Unperturbed by the news that, Inc. (NASDAQ: AMZN)'s AWS added a two-way SMS capability to its Pinpoint product, which triggered a 7 percent decline in Twilio Inc (NYSE: TWLO) shares and a 2 percent drop in Vonage Holdings Corp. (NYSE: VG) shares on Tuesday, Needham reiterated its Buy rating and $9.50 price target for the shares of Vonage.

At publication, Vonage shares were rallying 4.75 percent at $8.27, Twilio was soaring 6.98 percent to $29.44 and Amazon shares were up 1 percent at $948.

Analysts Richard Valera and Jordan Zelin noted that the new feature is narrowly focused on enabling user engagement campaigns for app developers and not a general purpose SMS/voice API, such as offered by Vonage. Going by Nexmo's previous collaborations with AWS, the analysts surmised that Vonage might be providing the back-end for the service.

See also: Drug Stores Next On The Amazon Hit List?

Needham also noted that recent scares from related Amazon product launches proved to be buying opportunities. The firm referred to Amazon's recent entry into the video conferencing market through Chime and the Contact Center market through Amazon Connect, triggering a negative reaction in the shares of LogMeIn Inc (NASDAQ: LOG) and Five9 Inc (NASDAQ: FIVN), respectively.

"However, thus far, neither of these AMZN products has appeared to have had a meaningful impact on either of those companies' businesses," the firm said.

But for this Pinpoint noise, the firm noted that Vonage had shown strong momentum in both its UCaaS and CPaaS businesses in the second quarter. The firm indicated that Vonage's UCaaS had one of its largest bookings quarters in its history.

Related Link: Should Twilio Shares Be Bought On Weakness?
Image Credit: Amazon

Latest Ratings for AMZN

Feb 2019Pivotal ResearchInitiates Coverage OnBuy
Feb 2019Raymond JamesMaintainsOutperformOutperform
Feb 2019Deutsche BankMaintainsBuyBuy

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Reiteration Analyst Ratings Movers Tech Trading Ideas Best of Benzinga


Related Articles (AMZN + FIVN)

View Comments and Join the Discussion!

Cramer Explains Why Mega-Large-Cap Stocks Tend To Sell Off For No Reason

Vetr Crowd Downgrades Ford