TWLO - Twilio: Opportunities With The Reviewed Segment Business

2024-04-09 17:19:56 ET

Summary

• Twilio's stock price has dropped significantly, causing concern among investors due to slower growth and underperformance in its Segment business.
• The company's cloud communications business faces competition, limiting its pricing power and revenue growth.
• Twilio's foray into artificial intelligence has not yet boosted growth, but things are likely to change in 2025.
• Also, following activist investors' complaint and an operational review, the Segment business could act as a differentiator for Twilio thereby improving its competitive positioning.
• However, volatility risks should not be excluded.

Trading at around $60 at the time of writing, Twilio's ( TWLO ) valuations have come down significantly. One of the reasons is growth slowing down as shown in the chart below while its strategically important Segment business, formerly known as Twilio Data & Applications, continues to underperform....

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