Market Overview

What AWS Pinpoint Means For Vonage And Twilio

Share:
What AWS Pinpoint Means For Vonage And Twilio
Related AMZN
Detroit's Tallest Building Breaks Ground: 'This Is Going To Be A Site Of Our Recovery'
Why Overstock Is The Perfect Storm For This Market
Amazon will resume selling Apple TV, Google Chromecast (Seeking Alpha)
Related TWLO
ICYMI: Short Seller Slams OSI Systems, Sell-Side Makes Some Notable Calls
After Twilio's Rocky Year, Analyst Suggests Investors With High Risk Tolerance Revisit The Stock
Twilio - Revisiting A Fallen Angel (Seeking Alpha)

Unperturbed by the news that Amazon.com, 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

DateFirmActionFromTo
Dec 2017Evercore ISI GroupInitiates Coverage OnOutperform
Dec 2017Moffett NathansonInitiates Coverage OnBuy
Nov 2017NomuraMaintainsBuy

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!

Partner Center