NEW YORK (TheStreet) -- Former Twitter (TWTR) CEO Dick Costolo appeared on CNBC's "Squawk Alley" on Tuesday afternoon to discuss the market status and general mood in Silicon Valley after tech stocks rallied this summer.
The success of San Francisco-based cloud communications company Twilio (TWLO) since its IPO on June 23 has "let everyone out here know the market is open up for business again," Costolo said.
For the 2016 second quarter and Twilio's first earnings report, the company posted a loss of 8 cents per share, surpassing analysts' projected loss of 14 cents per share. Revenue rose 70% year-over-year to $64.5 million, exceeding analysts' expected revenue of $58.22 million.
But even after Twilio's success, people aren't rushing into the market like in the dot-com era, he pointed out.
"I would classify the mood out here in the Valley right now as pretty calm and patient," he said, adding that there are some "very robust private companies that could be public at any time."
Apart from up-and-coming tech startups, more mature platforms like photo-sharing app Snapchat, ride-hailing app Uber, and home rental startup Airbnb are "taking their time and perfectly content to keep moving along in the private markets," he said.
Generally speaking, these types of companies that were once unicorns, or tech startups valued over $1 billion, have "come back to earth" and are in "no rush to do anything one way or another," Costolo said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Twitter as a Sell with a ratings score of D. This is driven by several weaknesses, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers.
You can view the full analysis from the report here: TWTR