American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Twilio stock soars 150%: what’s driving the rally?

by admin January 25, 2025
January 25, 2025
Twilio stock soars 150%: what’s driving the rally?

Twilio Inc (NYSE: TWLO) is ripping higher this morning after setting bullish targets for the next few years at an investor day on Thursday.

Shares of the cloud communications company have rallied as much as 150% over the past seven months – but a Baird analyst is convinced it’s not done pleasing its shareholders yet.

William Power sees Twilio stock pushing further up to $160 this year that indicates potential for another 20% upside from current levels.

Baird expects Twilio to beat estimates in Q4

Twilio shares opened about 20% up today after guiding for adjusted operating margin of 22% in 2027. In comparison, the metric stood at 16% only in its latest reported quarter.

Baird has been wary of chasing the recent strength in the cloud communications stock – but the investment firm now expects continued momentum in profitability and cash flow to unlock further upside in TWLO, its analyst told clients today.

William Power recommends owning Twilio Inc at current levels as he expects the company to come in ahead of estimates in its to-be reported quarter and raise guidance for the next one as well.  

Nonetheless, Twilio stock does not pay a dividend that keeps it unattractive for income investors at writing.

Is Twilio stock expensive to own at current valuation?

Twilio Inc has experienced an explosive rally since last June but the Baird analyst continues to see it as reasonably valued at current levels considering the tailwinds.

William Power is positive on the San Francisco headquartered firm also because it offers exposure to continued expected growth in artificial intelligence.

9,000 AI companies and 90% of Forbes 50 AI startups are building on TWLO as a customer engagement layer, and AI related companies spent $260 million on Twilio in the last 12 months.

The company’s voice and messaging bots, he’s convinced, will accelerate growth in and help Twilio stock command a higher multiple moving forward.

AI could grow Twilio’s TAM to $158 billion

Twilio committed to generating about $3.0 billion in free cash flow through 2027 at its investor day – compared to less than $700 million only over the past three years.

The announcement triggered a massive surge in the company’s share price today because analysts had called for a much lower $2.76 billion of free cash flow for the next three years.

“If we execute well in 2025, I think we write our own story from 2026 on,” Khozema Shipchandler – the chief executive of Twilio Inc said in a recent interview with CNBC.

Focusing on expanding its footprint in conversational artificial intelligence could expand the company’s total addressable market from $119 billion to about $158 billion by the end of 2028, he added.

Investors should know, however, that Twilio stock is still down sharply from its peak of close to $450 in 2021.

The post Twilio stock soars 150%: what’s driving the rally? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
What American Express earnings reveal about US consumer spending and economic trends
next post
UK to ease tax rules for wealthy foreigners: what Rachel Reeves’ ‘more generous’ repatriation plan means

Related Posts

Intellistake announces exclusive partnership with Singularity Venture Hub

July 16, 2025

XRP surges 5% on breakout, analysts have $6...

July 22, 2025

Sports streaming venture from Fox, Disney and Warner...

August 2, 2024

Trump Media stock erases all gains since it...

April 12, 2024

CAC 40 index hits key price as LVMH,...

September 27, 2024

S&P 500 climbs for best day since early...

July 24, 2024

PepeX poised for 250% presale surge while PEPE...

April 6, 2025

Bitcoin price approaches $69K as open interest reaches...

October 21, 2024

S&P 500, Nasdaq close at all-time highs ahead...

July 11, 2024

‘So darn easy’: IRS’ free Direct File pilot...

March 8, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved