Look out above cloud investors.
The company's rapid rise is in no small part due to the company's integration of the largest players in the tech sector into its business. Some of the largest clients for Twilio's cloud communications services include Facebook's(FB) - Get Report Messenger and WhatsApp applications, as well as Google (GOOGL) - Get Report and Uber.
The use of these industry giants has propelled Twilio stock upward, as it becomes the preferred API for the companies' ubiquitous applications.
Alex Zukin, San Francisco-based senior research analyst at Piper Jaffray Companies, told Real Money that Twilio provides unparalleled convenience across these platforms.
"The more channels the companies have to manage, teaching developers just one API helps a lot," Zukin said. "As opposed to learning a new APIs for every application, it's just one."
The ease of transition for developers across platforms has been positive for both Twilio as well as the tech giants it partners with.
However, historically, the tie-in of companies like Uber into large segments of revenue also exposes the company to risks.
In 2017 the cloud-computing company saw its second -quarter earnings stung by the loss of Uber as a major client when the ride-sharing service talked about its plans to move communications "in-app." The initiative caused Uber's contribution to Twilio revenue to drop from 14% in 2016 to just 4% as of March 31, 2018.
Zukin downplayed this risk, pointing to the unique situation of Uber.
"We believe that Uber is a unique case of a hyper-growth company with significant technological resources that quickly scaled up its usage of Twilio, and that most companies are unwilling or unable to navigate the complexities of integrating with multiple vendors across geographies as this requires significant technical resources," he wrote in a note Tuesday morning, pushing an "overweight" recommendation for the stock.
The issues with reliance on larger players is not unique to Uber, however.
A 10-K filing reflecting 2017 states that Twillio outsources "substantially all of [its] cloud infrastructure to Amazon Web Services."
When asked about this reliance and the potential for Amazon.com Inc. (AMZN) - Get Report to directly compete with Twilio, which was a concern with Amazon's Pinpoint services in 2017 as well, Zukin again provided a counter.
"Once you reach a certain scale, it would make more sense for Amazon to buy Twilio rather than compete with them," he said.
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Action Alerts PLUS, which Cramer manages as a charitable trust, is long FB, GOOGL and AMZN.