Latest news with #TwilioInc
Yahoo
4 days ago
- Business
- Yahoo
Twilio Soars 19% in a Month: Should Investors Buy the Stock Now?
Twilio Inc. TWLO has delivered a solid 18.8% gain over the past month. This performance easily beats the Zacks Internet Software industry, which rose 15.8% in the same period. The stock has also moved ahead of big cloud communication providers, including Inc. AMZN, Cisco Systems, Inc. CSCO and Microsoft Corporation MSFT. Shares of Amazon, Cisco and Microsoft have risen 12%, 8.7% and 7.1%, respectively. This outperformance shows investors are increasingly confident about Twilio's long-term story, even during a volatile market shaped by trade conflicts and geopolitical risks. We believe this momentum is grounded in strong fundamentals, and TWLO's long-term outlook justifies a buy position for now. Image Source: Zacks Investment Research Twilio maintains its leadership position in customer engagement by enabling real-time, personalized interactions for businesses globally. Its artificial intelligence (AI)-powered solutions play a key role in driving efficiency and customer satisfaction. Twilio Verify and Voice Intelligence leverage AI to automate and optimize customer interactions, delivering better security and valuable insights. Twilio Segment, a rapidly growing customer data platform, is another growth driver. By unifying customer data from multiple touchpoints, Segment empowers businesses to run highly targeted, data-driven marketing campaigns, boosting retention and sales. As enterprises increasingly adopt AI to streamline operations and enhance customer experiences, Twilio's data-rich, AI-driven platforms will continue to benefit from this trend. The company's strategic positioning in the growing customer engagement market makes the stock worth buying despite near-term challenges. Twilio's application programming interface (API)-first approach differentiates it from larger tech rivals such as Microsoft, Amazon and Cisco. While these giants offer standardized, bundled solutions, Twilio's customizable APIs enable businesses to create tailor-made communication experiences, giving them a competitive advantage. This flexibility appeals to a wide range of customers, from startups to large enterprises, enhancing customer stickiness and loyalty. Furthermore, Twilio's global reach across 180+ countries extends its market presence beyond many regional competitors. Its deep integration across messaging, voice, email and video makes it the go-to provider for comprehensive customer engagement solutions, strengthening its long-term growth prospects. Twilio's latest financial results for the first quarter of 2025 demonstrate the company's resilient business model amid ongoing macroeconomic uncertainties. In the first quarter, the company delivered nearly 43% year-over-year EPS growth, with revenues climbing 12%. Twilio Inc. price-consensus-eps-surprise-chart | Twilio Inc. Quote Twilio's dollar-based net expansion rate improved to 107%, up from 106% in the previous quarter and 102% in the year-ago quarter, reflecting strong customer retention and upselling momentum. The company's active customer accounts grew to more than 335,000 as of March 31, 2025 compared to 325,000 in the previous quarter, highlighting its continued customer acquisition. Twilio's balance sheet remains solid, with $2.45 billion in cash, cash equivalents and short-term investments as of Dec. 31, 2024. Its free cash flow generation of $178 million in the first quarter, along with $191 million in operating cash flow, demonstrates its financial stability and ability to fund growth initiatives. Twilio's strong cash flow has helped it return cash through regular quarterly dividend payments and share repurchases. In 2024, Twilio repurchased $2.33 billion worth of shares, completing its $3 billion buyback program. In the first quarter of 2025, it bought back shares worth $126 million under the ongoing share repurchase authorization of $2 billion. Its share buyback strategy reflects management's confidence in the company's long-term value. Despite its strong growth, Twilio stock still looks reasonably priced. It trades at a forward 12-month price-to-sales (P/S) multiple of 3.69X, which is lower than the industry average of 5.66. This discount adds to the appeal for long-term investors. Image Source: Zacks Investment Research Compared with its competitors in the cloud communication space, Twilio trades at a discounted valuation multiple against Microsoft and Cisco, while at a premium against Amazon. At present, Microsoft, Cisco and Amazon have a P/S multiple of 11.09X, 4.34X and 3.05X, respectively. Twilio's strong performance demonstrates real progress in its business fundamentals, rising customer engagement, improving margins and a smart capital return program. With its AI-driven platform, flexible API-first strategy and compelling valuation, now is a good time to invest in TWLO stock. Twilio carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
19-05-2025
- Business
- Yahoo
Morgan Stanley Analyst Maintains Buy Rating on Twilio (TWLO) Stock, Keeps $117 PT
We recently published a list of . In this article, we are going to take a look at where Twilio Inc. (NYSE:TWLO) stands against other AI stocks on Wall Street's radar. Days after the Biden-era rule on AI chips export was rescinded, a bipartisan group of eight U.S. lawmakers has now introduced a bill requiring makers of artificial intelligence chips to include technology that verifies the location of their chips before exporting them. Introduced in the U.S. House of Representatives, the Chip Security Act will aim to address reports of U.S. export-controlled AI chips being smuggled into China. The bill comes shortly after US President Donald Trump began his tour of the Middle East this week, announcing several deals that will send AI chips to countries in the Middle East. This has been despite growing opposition from some inside the US government. READ NEXT: and 'In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors.' For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A software developer in front of a monitor, coding to build the latest internet content & Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service (CPaaS) company. On May 15, Analyst Meta Marshall from Morgan Stanley maintained a 'Buy' rating on the stock with a $117.00 price target. Twilio has been advancing strategically and demonstrates significant growth potential, which has led to the buy rating. In particular, Twilio's platform stood out at its recent Signal event, demonstrating how it can enhance B2C relationships through contextual data crucial for cross-selling opportunities. Even though financial details weren't shared at the event, the company made it clear that Twilio is committed to simplifying its platform and improving its value proposition. The company has also announced a multi-year partnership with Microsoft to develop conversational AI solutions on Azure AI Foundry. This announcement will likely help to grow its reach. Overall, TWLO ranks 9th on our list of AI stocks on Wall Street's radar. While we acknowledge the potential of TWLO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TWLO and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-04-2025
- Business
- Yahoo
Is Twilio Inc. (TWLO) the Most Promising Long-Term Stock According to Analysts?
We recently published a list of the 11 Most Promising Long-Term Stocks According to Analysts. In this article, we are going to take a look at where Twilio Inc. (NYSE:TWLO) stands against other promising long-term stocks. On March 31, Banrion's Shana Sissel recently appeared on CNBC's 'Power Lunch' to discuss that buying at lower valuations is favorable for long-term investors. Shana Sissel highlighted that the markets now want transparency, given the persistent volatility that has lasted for a while now. When this clarity is lacking, it becomes difficult for investors and businesses to plan for the long term. This uncertainty has led to soft consumer and CEO confidence, which makes it challenging to develop long-term strategies when key aspects such as industrial policy, business policy, and taxes remain unresolved in the US. Sissel emphasized that until there is more certainty, volatility is likely to persist. She expressed skepticism that any immediate announcements would provide the level of information investors desire, especially because of the administration's habit of making statements that are later contradicted or revised. However, Sissel pointed out that long-term investors can find attractive buying opportunities if they look beyond the current uncertainty. She noted that the recent drop in valuations for many tech stocks now presents favorable buying opportunities for long-term investors. Regardless of the short-term fluctuations in policy uncertainty, many tech and security companies still benefit from long-term demand due to trends like the ongoing adoption of AI and the growing need for cybersecurity and infrastructure protection. Even when government decisions are unclear, these sectors are resilient because their products and services address fundamental needs that are unlikely to change with fluctuating market cycles. We first sifted through the Finviz stock screener and financial media reports to compile a list of the top stocks with high upside potential of over 40%. We then selected 11 stocks with a 10-year revenue compound annual growth rate of over 20%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey's database. Note: All data was sourced on April 21. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A software developer in front of a monitor, coding to build the latest internet content & information. 10-Year Revenue CAGR: 47.93% Number of Hedge Fund Holders: 74 Average Upside Potential as of April 21: 65.90% Twilio Inc. (NYSE:TWLO) offers customer engagement platform solutions internationally. It operates through two segments: Twilio Communications and Twilio Segment. It provides various application programming interfaces and software solutions for communications between customers and end users, such as messaging, voice, email, flex, marketing campaigns, and user authentication and identity. On February 25, Tigress Financial analyst Ivan Feinseth increased the stock's price target to $170 from $135 while keeping a Buy rating. This was driven by the company's AI-driven customer growth and its focus on AI for improved automation. In presales, data-driven lead identification shortened sales cycles, and 80% of the new inbound leads are processed by AI. In post-sales, AI-driven help center assistance recorded a 75% ticket deflation rate. In 2024, more than 9,000 AI companies used Twilio's services. Recently, in March, Twilio Inc. (NYSE:TWLO) started collaborating with Cedar, which is a patient financial experience platform for healthcare providers. Twilio will power Cedar's patient communications across SMS and Voice, including via Twilio's AI-powered ConversationRelay service. Twilio's AI-powered financial experience will allow Cedar to streamline communications with clients, enhance payment experience, and inculcate smart patient support through AI-powered voice agents. Overall, TWLO ranks 5th on our list of the 11 most promising long-term stocks according to analysts. While we acknowledge the potential of TWLO as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TWLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
05-04-2025
- Business
- Yahoo
Is Twilio Inc. (TWLO) One of the Best Enterprise Software Stocks to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Twilio Inc. (NYSE:TWLO) stands against other best enterprise software stocks to buy now. In 2024, the global enterprise market size was estimated at $263.79 billion, according to Grand View Research. It's expected to now grow at a CAGR of 12.1% from 2025 to 2030, due to the increasing demand for automated and integrated solutions. Enterprise software becomes more desirable as organizations seek reduced reliance on HR to eliminate manual errors and automate routine tasks. Therefore, ERP (enterprise resource planning), CRM (customer relationship management), and data analytics software are becoming increasingly popular. Enterprise software is actively transforming with the integration of AI technologies, which changes how it's designed, deployed, and utilized. According to Endava, GenAI is driving this transformation by incorporating creative and analytical capabilities into enterprise applications. This enables software to undergo intelligent tasks like generating reports, creating personalized training materials, and writing codes. AI not only automates manual jobs but also allows hyper-personalization of customer-facing enterprise software. This allows platforms like CRM and e-commerce to deliver targeted content and recommendations, which leads to higher customer satisfaction and improved sales. This is fueled by adaptive AI-enhanced enterprise software that learns from vast datasets to provide real-time and individualized interactions. AI-driven automation is also becoming more popular in core business processes. ERP and workflow management systems are automating complex tasks and reducing manual intervention to improve overall efficiency. Enterprises are streamlining operations and making data-driven solutions through the integration of now-standard features like process mining, intelligent document processing, and predictive analytics. Agentic AI is further pushing enterprise software towards greater autonomy. These are AI systems that act like human agents and autonomously perceive, reason, and analyze data to achieve certain goals. As enterprise software continues to integrate advanced AI capabilities in its regular applications, the technology becomes more proactive and intelligent. We sifted through ETFs and financial media reports to compile a list of the top enterprise software stocks. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A software developer in front of a monitor, coding to build the latest internet content & information. Number of Hedge Fund Holders: 74 Twilio Inc. (NYSE:TWLO) offers customer engagement platform solutions internationally. It operates through two segments: Twilio Communications and Twilio Segment. It provides application programming interfaces and software solutions for communications between customers and end users. It also offers software products to build direct and personalized relationships with end users. The company's core enterprise software and drove $1.121 billion in Q4 2024 revenue, which was a year-over-year improvement of 12%. This growth was fueled by expansion in trusted channels, international expansion, and cross-selling and upselling to existing customers. The company is also investing in AI to enhance this platform. Twilio Inc. (NYSE:TWLO) is using AI for improved automation. In presales, data-driven lead identification shortened sales cycles, and 80% of the new inbound leads are now processed by AI. In post-sales, AI-driven help center assistance achieved a 75% ticket deflation rate. Over 9,000 AI companies used Twilio Inc.'s (NYSE:TWLO) services in 2024. On February 25, Tigress Financial analyst Ivan Feinseth increased the company's price target to $170 from $135 and kept a Buy rating. This sentiment came from the company's AI-driven customer growth and the advancements in its AI-driven platform. Overall, TWLO ranks 8th on our list of best enterprise software stocks to buy now. While we acknowledge the growth potential of TWLO, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TWLO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Jim Cramer Says Stay Away from Twilio Inc (TWLO) – ‘Hype is Too Great'
We recently published a list of . In this article, we are going to take a look at where Twilio Inc (NYSE:TWLO) stands against other stocks that Jim Cramer is discussing ahead of Q1 earnings season. Jim Cramer in a latest program on CNBC talked about the winning sectors so far this year and said the trends show a 'strange' pattern. Cramer specifically mentioned the oil and gas sector which he believed would underperform given President Donald Trump's plan to keep energy prices lower. 'I thought this group would be down given that the president wants to expand drill and we have a slower economy, but the stocks aren't expensive and demand for natural gas very strong,' Cramer said. Cramer also talked about healthcare and other key sectors that performed well. He believes these patterns show that investors are turning to sectors that perform well during recessions. However, Cramer thinks the state of the economy is better than feared. 'The seven stocks that make up the S&P are too big to dismiss. You need at least some of them to put together a really positive tape. But the bottom line, it's terrific to see such a broad mixture of stocks winning here, from ones that can run in a recession to ones that can rally hard in a robust economy. What it tells me is that the market may be far healthier than we think, and this backdrop simply isn't as bad as many would have you believe.' READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In For this article, we picked 10 stocks Jim Cramer recently talked about during his programs on CNBC. With each company, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Number of Hedge Fund Investors: 52 Jim Cramer was asked about cloud communications and technology company Twilio Inc (NYSE:TWLO). Here is what he said: 'Yeah, they did miss the quarter, and I think that I think the hype is too great on Twilio. I know everyone got all excited about it, but that's a very crowded field. I'm going to have to say no, I don't want to buy Twilio here.' Overall, TWLO ranks 5th on our list of stocks that Jim Cramer is discussing ahead of Q1 earnings season. While we acknowledge the potential of TWLO, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TWLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
