The Twilio stock reaction after hours (down 5%) shouldn& #39;t surprise people. Estimates were low, and the expectation was a HUGE beat, which was priced into the current stock price. When stocks run up this much, and multiples expand this much, big beats are baked in. $TWLO

There& #39;s no room for error in this market for SaaS companies. As crazy as it sounds, a 9% beat wasn& #39;t enough to justify current multiples. That being said, good chance the stock trades flat to slightly up by EOD tomorrow despite the after hours movement

Look at Shopify for a parallel. They beat expectations by 40% (!) and ONLY traded up ~5%. This shows you the crazy expectations some of these companies are under. In a normal environment, if a company beat by 40% unexpectedly their stock might double

The important perspective to keep is a long term one. No matter what happens to the Twilio stock tomorrow people should keep in mind they& #39;re a company at ~$1.6B ARR, growing ~50% YoY. This is insane. I& #39;m as bullish as ever on the long term potential