Twilio proposed a secondary offering of $400 million led primarily by selling shareholders.
The valuation of the company is now $6 billion based on the fully diluted share count while revenue expectations are only $255 million.
Investors should not buy from insiders dumping shares at inflated valuations.
After the close on a Friday, Twilio (NYSE:TWLO) snuck out a proposed secondary despite only completing an IPO about four months ago. The communications software provider has seen the stock rocket since going public.