Back on August 22nd, we wrote an article titled “Can the Fun Last for ACIA and TWLO?” that looked at the stellar performance experienced by the two stocks since they IPOd earlier this year. In the article, we compared the runs experienced by ACIA and TWLO in the first few months of their lives as a public company to the runs that both Shake Shack (SHAK) and GoPro (GPRO) experienced as well. At that point, Acacia (ACIA) was up 404% since its IPO three months earlier, while Twilio (TWLO) was up 268% since its IPO just two months earlier.
As shown below, both stocks have finally begun to cool off, and today they both saw steep drops. ACIA was down 7%, while TWLO was down 14%. At this point, ACIA is up 302% since its IPO and TWLO is up 254%.
In our prior article, we showed the chart below comparing the performance since their IPO dates for ACIA, TWLO, GPRO, and SHAK. For GPRO and SHAK, they both experienced huge runs in their first 75-80 trading days as a public company, but from there it was all downhill. ACIA has now been public for more than 100 trading days, while TWLO is at 76 trading days. While we don’t want to suggest that these two high-fliers are destined for future declines similar to GPRO and SHAK, we do think the chart offers up a good warning sign.