Is Nutanix The New Twilio?
Cloud services companies Nutanix Inc (NASDAQ: NTNX) and Twilio Inc (NYSE: TWLO) have a lot in common from a business perspective. Nutanix IPO investors are hoping the similarities extend to the stock market as well.
Twilio shares jumped 92 percent from their $15 IPO price on the stock’s first day of trading back in June and haven’t looked back. The stock is now trading just shy of $62, up more than 300 percent in less than four months.
Last week, Nutanix shares surged more than 70 percent above the stock’s $16 IPO price on its first day of trading. The stock has continued its winning ways so far this week, adding more than 20 percent on Monday before pulling back 8.2 percent in early Tuesday trading.
Related Link: What's So Special About Nutanix?
Traders can’t help but notice the similarities in the market’s reaction to both stocks.
If Nutanix continues to follow in Twilio’s footsteps, the stock could be trading above $64 per share by the end of the year.
Q3 marked a rekindling of the tech IPO market. Nutanix, which raised $238 million, was joined by Japan’s Line Corp (ADR) (NYSE: LN), which raised $1.1 billion. All together, there were 10 tech IPOs that collectively raised $1.9 billion.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.