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Shares of Twilio (TWLO) - Get Twilio Inc. Class A Report are down a little more than 5% Friday, but that's better than the 8% slide the stock saw in premarket trading after the company announced a seven million-share follow-on offering. 

The offering is being priced at $40 per share, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment. 

If the stock finds support at $40 and is able to rally, then that bodes well for it going forward. That's an important level, Cramer said, pointing out Acacia (ACIA) - Get Acacia Communications, Inc. Report , another recent red-hot IPO stock, wasn't able to hold its recent add-on offering price. 

Despite the recent slide, Twilio is an "excellent" company, he added, explaining that it builds the behind-the-scenes technical infrastructure behind companies including Uber, Airbnb and WhatsApp. 

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While the valuation may seem high, it's got excellent growth and the best growth of this year's IPO class, Cramer concluded. 

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.