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Twilio, The Good, The Bad And The Ugly A Developer/investor's View

|Includes: Twilio (TWLO)

The What and The Why of Twilio

Twilio is in many ways the best game in town for telephony and SMS integrations for app developers big and small. It's offering is unlike anything on the maket as to its over all size and scale.

This is all great and everything but here is the problem. They leverage Amazon for services, which is ok for a proof of concept and all the way to the edge of an IPO but I think we'll see this become a problem as they go forward. Look at the financials. They are losing money because as much as the really nice Facebook contract creates inflows, the outflows of operations and scale to meet contractual obligations could expose the weak underbelly of this enterprise.

I have heard other posts speak of a possible aquisition. There is one potential, Amazon. Funny thing about this is they already own most of Twilio's infrastructure.

Reference and obvious others: gigaom.com/2009/03/03/why-amazon-will-ma.../

Twilio is something of a hollow shell. Their executuve team and management are playing a game. I'm not in. The second offering after the IPO was a rookie move and a huge mistake. It exposed their true colors, hollow as a dead tree.

I'm waiting for the next short opportunity, that is inevitable.