Twilio’s IPO success a positive harbinger for tech stocks

By : |July 14, 2016 0

The huge interest the public market has shown in the stocks of cloud communications tools maker Twilio has come as a fresh breath of air for tech stocks, those have seen lukewarm investor interest over the past few months.

CIOL Twilio’s IPO success a positive harbinger for tech stokcs

Twilio’s tools are used by the likes of Uber and Airbnb to enable calls and text messages between customers and drivers/hosts. The company went public late last month and priced the IPO at $15 per share. On Wednesday Twilio’s stock nearly tripled to close at $42.25 per share, a new record-high. The stocks soared on Wednesday by 10 percent after Coatue Management disclosed a new 6.25 percent ownership stake in the company.

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The hottest stocks in the market have not only given a positive fillip to tech stocks but have also made Twilio’s CEO Jeff Lawson richer by about $235 million. Lawson owns 8,635,492 shares of the company, and at Wednesday’s closing price, his net shareholding would be worth $364.8 million—up more than $235 million from the $129.5 million, when his shares were worth when the IPO launched.

But Lawson is under a lockup period that prevents him from liquidating his shares. Twilio’s stock has consistently jumped over the past 3 weeks, reaching new all-time highs almost every week.

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