From Nasdaq:

Twilio and Amazon are two giants in the cloud services market. While Twilio processes text messages, voice calls, and videos for mobile apps, Amazon Web Services (AWS) offers cloud infrastructure for computing power and storage. Twilio went public at $15 per share in 2016, and had a peak value of $70 billion in 2021. The company failed to meet its long-term growth targets, and analysts expect its revenue to only rise 8% in both 2023 and 2024. As Twilio’s growth slowed down, it faced competition from similar services and challenges with customer lock-in and margins.

Although Twilio had a promising start in cloud communications, its early mover’s advantage may not be enough for it to expand beyond its saturated niche. As its highly anticipated growth targets fall short, the company faces stiff competition, an uncertain future, and a turbulent stock market. Ultimately, investors seeking the next cloud titan may want to look elsewhere.



Read more: Could Twilio Become the Next Amazon?