NYSE:TWLO

Twilio Inc (TWLO)

214.56
-4.04 (1.85%)
as of Jul 10, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 10, 2026, 12:00 am

This summary was created by AI, based on 2 opinions in the last 12 months.

Twilio Inc (TWLO-N) is currently facing challenges as the stock is down 18%, primarily due to a lack of recognition of its strong fundamentals by investors. However, there are signs of optimism, as margins are reportedly expanding and revenues are growing at double-digit rates. Analysts anticipate a potential mean reversion between different sectors, particularly between semiconductors and software, as we move into 2026. Early indicators suggest that Twilio, along with other tech firms like Adobe and Salesforce, may be on the verge of benefiting from these changes in the market. This shift could signify a turning point for Twilio shareholders if the fundamentals become more widely acknowledged.

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Consensus
Bullish
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Valuation
Undervalued
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TOP PICK
Operating system for the digital world. Lots of volatility. A trading stock. 12-month price target of $460. It would be an investment if you can pick it up between $300-350. No dividend. (Analysts’ price target is $468.63)
PAST TOP PICK
(A Top Pick Aug 19/20, Up 46%) Price target of $460.75, decent runway ahead. Part of the cloud stack. Valuation is at all-time highs. Likely to be permanent demand to its business. Blowout Q2 results. Picking it up under $350 would be a bargain.
DON'T BUY
Incredible management and execution. Lofty valuation. Very difficult to try to forecast earnings to see if they'll catch up to the stock. If revenue keeps growing for many years, perhaps it could justify the multiple. He'd look for something else.
BUY
They report Thursday. He expects them to surprise to the upside. It's the best company for companies to send messages to their customers.
PARTIAL BUY
Has been erratic, but this remains a solid way for smart businesses to market themselves. They report next week, so buy some shares before and some after. Secular growth stories out of fashion on Wall St these days.
HOLD
Don't sell. It's seen as a Covid stock, but they offer a terrific product and businesses that reopen will continue to use it.
BUY

Example of SaaS that had a pullback. One of biggest benefactors of time spent remotely. Amazon of the communications world. Price target of $412.83.

COMMENT
He likes it. It's a cloud-based communications platform that lets app developers connect with customers Had a great run last year and good quarter last month. But it made a big secondary stock offering and got hammered. TWLO helps America gets vaccinated faster. TWLO has rebounded a buit lately, but is still down 20% from its high. Got hit with the current tech sell-off. Few understand what exactly TWLO does.
HOLD

Price target of $512, so still some runway. Star performer in cloud communications as a service. It's expensive. If you own it, hold it. If you don't own it, look at Bandwidth (BAND) instead, with a more reasonable valuation of just under 10x forward revenues.

BUY

TWLO is richly valued. It's a software company that helps app developers connect with customers. It's up 175% in the last 6 months. When Lyft or Airbnb sends you a text, Twilio makes money.

TOP PICK

Keep in the back of your mind when there's a correction. The Amazon web services version of the communications world. Cloud communications platform. Blowout Q2. 46% organic revenue growth. He has a 12-month price target of $300. If it gets between $150-200, just back up the truck. No dividend. (Analysts’ price target is $289.08)

BUY ON WEAKNESS
One of the market darlings right now. They have APIs that act as the foundation for business digital experiences. For developers it makes them more efficient. It is above his price target currently. He remains bullish on it. It is getting expensive trading at 27 times sales, but revenue growth exceeds 50%. If you get a correction, this is a great one to add to. (Analysts’ price target is $2.10)
COMMENT
The chart is amazing -- up 150% in one year. A large company now in a great growth industry. However, the multiples are off the charts now. This is not what they look to invest in.
PARTIAL SELL
Wish he owned it. The chart is fantastic. Take some money off the table now. Sell half now.
HOLD
He's never looked at this stock. The chart has been in an upward channel since early 2018. If you own it, keep it even though a pullback is highly likely. Maybe it's overbought. Overall, the stock is in good shape.
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