What Happened to the Twilio Stock Price Today?
- Twilio (NASDAQ:TWLO) stock dropped more than 10% after the cloud communications company reported first quarter numbers that — while strong — included a weak second quarter guide that spooked investors.
- After the sell-off, TWLO stock has plunged more than 30% from its early 2021 highs.
Why It Happened
- Don’t be fooled by the TWLO stock price reaction. Twilio’s first quarter numbers were good.
- Customer growth was healthy. Revenues rose 62%. Operating margins expanded by a good amount.
- But the second quarter guide calls for a pretty significant revenue growth slowdown, and margins are guided to compress.
- That’s not a great combination, especially for a stock that is priced for perfection like TWLO at 20X forward sales.
- The drop in Twilio stock ostensibly makes sense.
Does It Matter?
- Who cares about quarter-to-quarter fluctuations when you’re investing in a company like Twilio that is changing the way the world works?
- Twilio started out as a cloud communications platform that created industry-leading APIs to power digital communications between businesses and consumers — think when the Uber (NYSE:UBER) or DoorDash (NYSE:DASH) apps text you. Those communications are powered by Twilio’s APIs.
- That business in it of itself has tremendous long-term growth potential, because all communications are moving to the digital channel.
- But Twilio is doing so much more than creating APIs to digitize B2C communications.
- With Flex, Twilio is adding intelligence to its platforms and enabling companies to virtualize their entire call centers.
- With the acquisition of Segment, Twilio is boosting that intelligence with a data-driven AI system that can potentially automate and optimize the whole process.
- Long term, Twilio is a building an AI-powered digital customer engagement solution with endless applications.
- The 5- to 10-year upside potential in TWLO stock is enormous.
TWLO Stock Price Forecast
- The recent growth sector meltdown has created a golden buying opportunity in TWLO stock.
- This world-changer is worth a lot more than $300 today.
- Try $450. That’s where our numbers say the stock should trade today.
- Or try $480. That’s where Wall Street analysts believe the stock will trade in 12 months.
- Either way, there’s a lot of upside potential in TWLO stock from its current $300 levels.
Twilio is the exact type of stock we like to invest in for the long-haul. A still small company, that a lot of folks don’t know about yet, but which is sitting on a breakthrough technology in a emerging investment megatrend that will one day redefine how consumers go about their daily lives.
These early-stage “world changers” — as we like to call them — represent potential 10X investment opportunities, and are the best way to score huge returns in the stock market.
TWLO stock is one of them. But it’s just one. We think we’ve identified over 40 similar 10X potential opportunities in early-stage, world-changing technology stocks — and we’ve put all of them into a single investment portfolio in our venture-capital-style, exclusive research platform, Innovation Investor.
To get the names, ticker symbols, and key business details of those potential 10X winners, subscribe to Innovation Investor here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this video.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the focus of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative next-generation mobility stocks, become a subscriber of Innovation Investor today.