TWLO - Twilio: Pessimism Won't Last Forever

2024-06-10 08:30:00 ET

Summary

• Twilio stock still suffers from a lack of buying conviction.
• TWLO's PEG ratio of just 0.6 suggests the market seems too pessimistic.
• Twilio is still overcoming churn and a relatively weak revenue growth profile.
• However, the market isn't dumb, as seen in TWLO's valuation bifurcation.
• I argue why TWLO's pessimism won't last forever, as its consolidation remains constructive. Read on.

Twilio Accelerates Its GAAP Profitability Push

Twilio Inc. ( TWLO ) stock has continued to hover above its $55 consolidation zone since February 2024. However, investors seem to lack sufficient buying conviction to take it higher. In my previous bullish TWLO article in late February, I upgraded TWLO after my December 2023 cautious rating on TWLO panned out. I argued in February that Twilio's solid growth profile and relatively attractive valuation are critical considerations in my upgraded outlook. While TWLO has underperformed the market over the past three months, the selling intensity has also slowed tremendously....

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