Twilio, the revolutionary communication platform that has remarkably transformed how we connect is now publicly traded. So if you have been looking to invest in this company’s stock, now is an awesome time to add Twilio stock to your portfolio. Today’s guide will bring you up to speed on everything you need to know about investing in Twilio stocks.
From choosing the right brokerage to setting up your brokerage account to executing your first trade, we will go over everything you need to know about investing in Twilio stocks, including the benefits. Let’s dive in, shall we?
What is Twilio
Twilio is a leading cloud communication platform revolutionizing how people connect. Thanks to Twilio, developers can now seamlessly integrate voice, messaging, and video capabilities directly into their apps without sweating it.
Twilio boast of robust APIs that enable devs to programmatically make and receive phone calls, send and receive text messages as well as execute other communication functions.
Twilio is a big name in the tech industry because it built a technology that has remarkably disrupted the traditional way of designing and building communication systems. With Twilio, developers can now easily add communication capabilities to their applications. Because of how revolutionary Twilio’s technology is, many big brands, including Uber, Netflix, Airbnb, and Whatsapp, now rely on Twilio’s services to communicate with their users.
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Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Since its successful IPO in 2016, Twilio has made giant strides.
When did Twilio go public?
Twilio had its initial public offering on June 23, 2016, and it was a huge success. During its IPO, Twilio offered 9,000,000 shares of common stock at $15 per share. Given the hype the IPO generated, the stock opened at $23.99 per share and closed at $28.79 per share on the first day of trading.
Following its successful IPO, Twilio’s market capitalization was valued at $2.8 billion. Twilio’s IPO was considered a tremendous success because its stock value rose nearly 92% on the first day of trading.
While Twilio stock is listed on the New York Stock Exchange, you can buy the company’s stock on many popular brokerages, including eToro, under the ticker symbol TWLO.
The company is currently headquartered in San Francisco, California. The company’s bread and butter are providing cloud communication platforms exclusively designed to allow developers to build, scale, and optimize communications within their software.
How has Twilio stock performed since going public in 2016?
Twilio stock has performed remarkably since its IPO in 2016. The company’s stock has continued to rise sharply, with several periods of insane gains.
In the months following its successful initial public offering (IPO), Twilio stock traded between $20 to $30 per share. In 2017, the company’s stock began skyrocketing, reaching as high as $70 per share by the end of the year.
2018 kicked off with Twilio stock continuing from where it let off in 2017. By June 2018, Twilio stock reached as high as $150 per share, representing a whopping 400% increase from its IPO price. Although the stock retraced a little at the end of the year, 2018 was a pretty good year for Twilio stock.
In early 2019, Twilio stock traded even higher, reaching as high as $160 per shaper share by September of the same year. While Twilio started the year remarkably well, the stock dropped a little bit, closing the year at $129 per share.
The covid 19 pandemic of 2020 seriously impacted Twilio’s progress, with the company stock falling to around $95 per share in March 2020. Surprisingly, Twilio’s stock rebounded quickly, reaching as high as $200 per share in September 2020. This represented a whopping 100% increase from its low point.
In 2021, Twilio stock performed remarkably well, that the price of each share reached a new all-time high of $450 in February 2021. Even though that year saw a lot of volatility, the price of Twilio shares dropped to around $349 per share, capping an amazing year for investors.
While there was a massive sell-off in the stock market in 2020, Twilio stock performed way better than other tech stocks. As of today, the company’s stock is trading for $54.02 per share, a huge drop from its all-time high.
Is this a good time to buy Twilio stock
Are you thinking of adding Twilio stock to your investment portfolio? Well, that’s a pretty good move, as Twilio stock has shown a potential to rise significantly. Although 2022 saw Twilio’s stock value drop sharply, experts are betting on the company’s stock rebounding in the meantime.
At $54 per share, there is no better time than now to buy a couple of Twilio shares. We know that it is a significant drop from its all-time high, but you must realize that last year was a completely difficult year for the stock market, as most companies saw their stock value drop significantly, so it isn’t only Twilio shares that performed superbly.
Moreover, investors who were fortunate enough to have bought some of Twilio’s stock during its IPO as still in profit.
Tips for buying and trading Twilio stock
Although investing in Twilio stock is a pretty decent move, but before putting your money in any stock, you need to do your due diligence. Read on for some tips for buying and trading Twilio stock.
- Do your own research: Before investing your money in any stock, you want to first do due diligence. By due diligence, we mean researching and analysing the company. This includes looking at the company’s financials, competitive landscape and of course, industry trends.
- Keep an eye out for the company’s fundamentals: Following the company’s earnings, revenues and growth rates is a pretty smart thing to do if you’re looking to buy or trade the company’s stock. A company with solid fundamentals is more likely to do well in the long term.
- Consider the company’s valuation: Twilio is lauded for its high P/E ratio. What this simply means is that the company’s stock is trading at a premium, especially when you compare it to the industry average. The reason for this could be because of the company’s remarkable growth potential.
- Monitor the company’s progress: If you plan on putting your money in Twilio’s stock, we strongly recommend keeping an eye out for news and announcement related to the company. Some news you want to focus on includes product launches or partnerships. This usually impacts how a stock performs.
- Have an exit strategy: If you have made up your mind to buy Twilio stock, it’s important to have a plan for selling it as well. One way to go about this is to set a profit target or sell price if the stock falls below a specific price.
- Know the risks involved: Like every other investment, buying and trading Twilio stock comes with risks. So before investing in the company stock, keep in mind that stock prices can be pretty volatile. Also, there is always the possibility of losing money when you invest in stocks or any other type of investment.
- The trend is your friend: Pay close attention to a stock’s performance over time. By doing this, you’ll be able to identify a trend that may point towards future price movements. Technical analysis should suffice in this regard.
- Diversify your portfolio: Diversifying your portfolio can help spread risk and protect against volatility in any single stock.
It’s important to remember that past performance does not guarantee future results, so it’s always a good idea to consult with a financial advisor before making any investment decisions.
Best places to buy Twilio stock online
Are you ready to start putting your money into Twilio stock and don’t know the best places to buy the stock from? Well, to avoid any confusion, we have put together a list of top places you can buy Twilio stock. Here, check them out.
- Online brokers: Online brokers like eToro, Charles Schwab, TD Ameritrade, and more provide retail investors with a reliable platform to buy and trade Twilio stocks. What’s unique about these platforms is that they offer a wide range of investment options, including mutual funds, stocks, cryptocurrencies and more.
- Robo-advisors: If you are interested in automated investment management services, you won’t be disappointed to check out Robo-advisors such as Wealthfront and Betterment. These guys provide beginners and experienced investors with a smart way to diversify ther investment portfolios.
- Direct stock purchase plan (DSPP): Many companies, including Twilio, make it possible for investors to purchase stocks directly from the company. With this option, you don’t have to go through the hassles of signing up with a broker.
Regardless of the platform you opt for, we always encourage investors to compare fees and services before they invest in Twilio stock. Also, it’s important to double-check and ensure the platform is regulated.
Another thing you should know right from the get-go is that different platforms have their account minimums, fees, as well as restrictions for certain types of trades. To this end, it’s important to read their terms and conditions before opening an account.
How to buy Twilio stock on eToro
eToro is a social trading and investment platform that allows users to buy and sell stocks, including Twilio, online. If you would like to buy Twilio stock on eToro, here is a step-by-step guide:
- Create an account: Go to the eToro website and click “Join Now” to create a new account. You will need to provide your personal and financial information, as well as verify your identity.
- Deposit funds: Once your account is set up, you will need to deposit funds into your account to use for trading. eToro accepts a variety of payment methods, including credit/debit cards and bank transfers.
- Search for Snapchat: Go to the “Markets” tab and use the search bar to find Twilio. You can also use the “Stocks” filter to see all available stocks.
- Place an order: Once you have found Twilio, click on the stock to see more details and place an order. You will need to specify the amount of Twiliostock you want to buy, as well as the price you are willing to pay.
- Review and confirm: Review your order details to make sure everything is correct, then click “Set Order” to confirm. Your order will be processed according to the terms you have specified.
Keep in mind that investing in the stock market carries inherent risks, and you should carefully consider your own financial situation and risk tolerance before making any investment decisions. It is always a good idea to thoroughly research a company before buying its stock.
Final thoughts
In conclusion, buying and trading Twilio stock online can be a great way to invest in a company with strong growth prospects. There are several platforms available, including online brokers, Robo-advisors, and direct stock purchase plans, each with its own set of fees, terms, and conditions. It’s important to conduct your own research, consider the company’s fundamentals, and monitor the company’s progress when buying and trading Twilio stock.
Additionally, it’s essential to have a plan for selling, understand the risks, and diversify your portfolio to mitigate risk. Remember to always consult with a financial advisor before making any investment decisions and select the platform that best suits your needs and preferences.
Frequently asked questions: How to buy and trade Twilio stock online
What is the current price of Twilio stock?
The current price of Twilio stock can be found on the stock exchange where it is listed, such as the NYSE or through online stock market quotes providers, financial news websites or mobile apps.
How do I buy Twilio stock?
To buy Twilio stock, you will need to open an account with a broker that offers the ability to trade Twilio stock. Once your account is open, you can place a buy order for the stock and wait for it to be executed.
What are the fees associated with buying and trading Twilio stock on an online broker?
The fees for buying and trading Twilio stock on an online broker can vary depending on the broker and your account type. Common fees include trading commissions, account maintenance fees and inactivity fees. Make sure to read the terms and conditions and check the fee schedule before opening an account.
What is the minimum amount I need to invest in Twilio stock?
The minimum amount you need to invest in Twilio stock can vary depending on the broker, but some brokers may allow you to buy fractional shares.
Can I trade Twilio stock on margin?
Some brokers may offer margin trading, allowing you to borrow money from the broker to buy more shares than you could with your own money. However, margin trading comes with additional risks, and it’s important to understand the terms and conditions of the margin account before opening one.
What are the risks associated with buying and trading Twilio stock?
As with any stock investment, buying and trading Twilio stock carries the risk of losing money if the stock price falls. Other risks include market volatility, economic downturns, and company-specific risks.
