Is Twilio currently a steal? + Checking in on the OG meme stocks

A quick fix of the latest financial happenings.

Good morning, investors — and happy belated Thanksgiving!

Considering the holiday, I’ve kept today’s newsletter short. I hope you’re able to relax today and enjoy the time with friends and family. 

If this is your first time with us, don’t forget to subscribe here. If you enjoy today’s issue, please hit the heart button at the end of the report.

Without further ado…

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One Interesting Read: A Case for Twilio

Have you ever used Lyft to get from A to B? 

Or DoorDash when you don’t have the energy to cook after a long day of work?

Or made a payment with Stripe?

Or banked with Chime?

If so, chances are you’ve unwittingly crossed paths with Twilio as well.

From a consumer perspective, Twilio operates behind the scenes, but it’s the communications backbone of many major brands. And its growth is undeniable.

If you’re curious about this company’s operations and investment potential, I highly recommend this week’s interesting read. Rahul Setty, the author of the recently launched newsletter Exit Velocity, takes a deep dive into Twilio in his inaugural issue: “Twilio: The Pendulum Swings Both Ways.”

Twilio: The Pendulum Swings Both Ways

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Meme Stocks Then and Now: GME and AMC

Remember meme stocks? 

Seems like a ridiculous question considering the title isn’t transitory, but nearly two years have passed since the meme stock revolution originated. In early 2021, GameStop — the largest physical retailer for all things video games — saw its share price reach dizzying heights thanks to a massive short squeeze; shares jumped as high as $347.51 after trading for only a handful of dollars a few months prior. 

That price point proved to be unsustainable, though. (R.I.P. to the portfolios with a GME cost basis in the mid-$300s.)

So, where does GME trade now?

Ignoring the company’s 4-1 stock split in July (which just complicates historical price charts), GME still towers above historical levels and 443% higher than where it concluded in 2020. 

Speaking of large physical footprints, AMC Theatres — the world’s largest film exhibitor — experienced its own meteoric ascent in early 2021. Shares of AMC also touched the clouds, peaking at $62.55 after trading for only a couple of dollars at the end of 2020. 

Much like GameStop, AMC has retreated over the last year and a half — down to $8.17. 

If you bought early and HODLed, chances are you still have a commendable unrealized gain. If you followed the crowd and bought along the way, your odds aren’t as good. 

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Three Eye-Opening Tweets

And finally, we close with three eye-opening tweets. 

YIKES. That’s painful. 

Financelot @FinanceLancelot

Still the best CNBC interview... ever 🤣

Semiconductors: a hot commodity.

Wasteland Capital @ecommerceshares

Did you know that semiconductors (or “integrated circuits”) are the #1 component of global trade, with a 15% share? They overtook oil in 2015. In 2020, computers were second at 12%, and oil at 9%. Cars were only #4, and then everything else quite far behind.

*Whispers* This was easy to see coming.

CarDealershipGuy @GuyDealership

Carvana is on pace to run out of cash by end of 2023. Car vending machines will go down as the ultimate bull-market phenomenon. (via @carlquintanilla, BofA)

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