Hot Tech Stocks to Buy: Twilio (TWLO)
Soaring cloud communications platform Twilio Inc (NYSE:TWLO) has just reported revenue up close to 50% year-over-year. Shares rose by as much as 20% following the results, however analysts believe the stock has plenty of further upside potential left. Indeed, with a “strong buy” analyst consensus rating, top analysts have an average price target on TWLO of $38.25, which is 25% above the current share price.
Twilio enables companies to talk to customers using anonymous voice, video and messaging. After going public in June 2016, the stock reached incredible heights of $70. Prices subsequently crashed on the announcement of a secondary offering, and again after the loss of key customer Uber. However, the Street is optimistic that a turnaround is on the cards.
Five-star Drexel Hamilton analyst Brian White reiterated his buy rating on Aug. 7. He has the highest price target on the Street of $44 (43.7% upside). He notes that Twilio served up a strong outlook for the third quarter and has now boosted its guidance for full year 2017. White says:
“We believe the sharp sell-off in Twilio’s stock in early May was an extreme overreaction to a slightly lowered outlook due to Uber. As Twilio moves past the Uber issue, we believe more investors will warm up to the stock and tonight’s strong results should help in this regard.”