Kim Bolton Twilio Inc TWLO-N WATCH May 22, 2024

Cloud communications platform. Caters to developers. Difficult time as interest rates went up. Usage-based payment. Sees it growing north of 30% over next 5 years. First, need to see Fed pause hikes. 12-month target of $73.50. Keep your eye on it.

He last bought this in 2019. It's a long-term holding. He likes it that the CEO bought $10 million in shares. This has broken above its 200-day moving average. They are cost-cutting and managing efficiencies. This has more upside than downside for a long-term investor.

He bought it in December, because he thought there was a technical breakout above $75, but just sold it because shares have done nothing.

There was a negative analyst's note today--business is bad and there's warning of a consumer pullback. It's sad to see this disintegrate.

TWLO does not report until Feb 14, but it reported preliminary numbers. Revenue growth is expected at 11%, vs 8% estimates. 4Q income is expected to be above guidance. A $2B share buyback was approved. 2025 organic revenue growth is expected to be 7% to 8%. Free cash flow is expected to be at least $825M. These were solid prelim results and outlook. Things look good here for sure, but full details will be available next month. 
Unlock Premium - Try 5i Free

He can't believe how this has become a great assistant to small businesses to build business. They had a great quarter.

They hype got too big about this, and the field is too crowded.