TWLO - Twilio: As Stock Continues Receding A Buy Point Emerges (Rating Upgrade)
2024-06-08 06:16:29 ET
Summary
- Twilio stock has declined nearly 20% this year, presenting an opportunity for investors to buy at cheap values.
- The company lifted its operating income and FCF guidance for the year after completing its operational overview of the Segment, its struggling subsidiary.
- Twilio also announced a $2 billion buyback program, which covers ~20% of the company's current market cap and is an indication of management's belief in the business' trajectory.
- The stock trades at a cheap ~11x forward FCF multiple.
- I'm upgrading Twilio to neutral. Maintain some caution here, but wading in amid lower prices, a large new buyback and a profit guidance boost may prove beneficial.
With stock market indices teetering at all time highs, now more than ever is a great time for investors to bank on contrarian plays that have little correlation to the broader markets. In other words, stock selection is of the utmost importance now: and investors who are willing to stomach some near-term volatility can pick up some tremendous positions at cheap values....
Twilio: As Stock Continues Receding, A Buy Point Emerges (Rating Upgrade)