Twilio Is Soaring Today; Cramer Says It's Not Just A 'Mythical Creature With Absurd Valuation'
Twilio Inc (NYSE: TWLO) is A stock that has only been trading for a few days. The cloud communications platform saw its share trade for the first time on a public exchange LAST Thursday.
Shares opened for trading at $23.99 after pricing 10 million shares of Class A common stock at a price of $15 per share. By Tuesday afternoon, the stock was trading above $32, up around 18 percent on the day.
Related Link: What Happened To Twilio On Its IPO Debut?
Cramer: Twilio Is A Real Business With Real Value
Jim Cramer dedicated a portion of "Mad Money" on Twilio's stock surge since its IPO.
Cramer suggested "unicorn" Silicon Valley startups are "real businesses with real value" and that it's "not just mythical creatures with absurd valuations."
Cramer pointed out that Twilio's customers include Uber, Nordstrom, WhatsApp, among other notable names. Twilio uses the cloud to create platforms that help developers build, expand and operate in real-time communication.
"Twilio has built a platform that is widely recognized as the gold standard for cloud based communications," Cramer said.
Cramer added that it's more cost effective for businesses to make use of Twilio's service than to allocate resources and try to duplicate a similar offering in house.
Meanwhile, Twilio's no debt and $200 million in cash highlights its "pristine" balance sheet which also contains no debt. The company is also re-investing cash into its business and investors "may be willing to pay up for growth."
"I like the story and I like the stock, although I'd like it even more at a lower level," Cramer concluded.
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