Twilio Inc. shares fell more than 6.6% on Monday after Amazon.com, Inc. announced a new messaging feature as part of its Amazon Web Services division. While Twilio had previously partnered with Amazon on text messaging services, the news appears to indicate that Amazon plans to build out its own solutions, which could become a major competitor to Twilio given Amazon’s reputation for low cost.
Amazon Pinpoint will let developers send two-way SMS messages as well as define rich messaging campaigns with various substitutions based on stored user data, according to the company’s recent blog post. The cloud services giant also noted that “SMS is an area of continued investment for AWS, so you can expect to see more advances and improvements,” which suggests that the new competition is not limited to a single feature. (See also: What Is Amazon Web Services and Why Is It so Successful?)
Twilio shares moved below key support levels after Amazon announced a potential competing service. …read more
Read more here: Twilio Stock Breaks Down on Amazon News
Category: TWLO, AMZN