TWLO - Twilio: Still Not Where It Needs To Be To Be Attractive
2024-06-09 02:31:24 ET
Summary
- Twilio's stock has seen downward pressure, down 6.8% compared to the S&P 500's 3.8% increase.
- The company is making progress with improved fundamentals, including revenue growth and approaching profitability.
- Management's decision to prioritize share buybacks over growth is a concern, but overall, the future for Twilio looks decent to good.
- Even so, the firm is not at the point that it's an attractive prospect just yet.
Just over three months ago, in early March of this year, I decided to upgrade shares of Twilio ( TWLO ) from a ‘sell’ to a ‘hold’. Prior to that point, dating back to an article published in November of 2021, I had been rather bearish about the firm. That bearishness turned out to be accurate, with shares of the company plunging 81.4% at a time when the S&P 500 was up 7.9%. When I decided to upgrade the stock, this was based on improved fundamentals. Revenue was continuing to grow and the company was quickly racing to break even from a profitability perspective. Cash flows were also growing at a nice clip....
Twilio: Still Not Where It Needs To Be To Be Attractive