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For a bit more context:

Twilio announced its first earnings after the IPO

It's tripled since IPO price of $15

Today they're trading around $48.70

http://amigobulls.com/articles/is-twilio-inc-stock-a-buy-aft...

I don't know anything about IPOs, but isn't that bad for Twilio? They could've potentially made double or triple what they did originally, right?

There are enough moving parts and conflicting incentives within the system that it's unlikely to be that simple. In theory, yes, they may have underpriced their IPO and left some money on the table, but that isn't necessarily the worst thing. In general, it's better to be thought of as a company that's outperformed expectations than underperformed them.

Perhaps, but keep in mind they sold only a small portion (~12%) of the company in the IPO, so the effect on the overall value (and longterm success) was limited.

As of this moment they're at $65.00 (a 22% jump today). I wonder why the sudden price surge?

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