Cloud communications provider twilio(NYSE: Twlo) Darkening in the past three months of 2024. It started in 2025 as well, but the company’s shares were subjected to great beatings after it reached 52 weeks on January 31.
Twilio shares decreased by 40 % of the 52 weeks he achieved earlier this year. The total uncertainty in the stock market due to the Trump administration’s tariff policies, along with a mixed quarterly report in February, has been collected to send the shares of this company in recent months.
Where are you investing $ 1,000 now? Our analyst team has just revealed what they think 10 best stocks To buy now. He continues.
However, the sharp decline of Twilio seems to be an opportunity for investors to buy a company that benefits from the increasing adoption of Artificial Intelligence (AI) In the area of cloud communication, especially given that its wealth can be transformed when its quarterly results are launched on May 1.
Let’s take a look at the reasons that make the Twilio arrow can restore the waves soon.
Twilio announced strong results for the fourth quarter of 2024 in February this year. Its revenues increased by 11 % of the period that did notAcceptable principles of accounting in general The profits increased by 16 % year on an annual basis to $ 1.00 per share. Twilio defeated Wall Street’s revenues, but her profits were a little lighter than $ 1.03 arrow expectations.
Investors rushed to press the panic button, and it was not surprising, because the guidance was lighter than expected. TWILIO expects its upper line to 8 % to 9 % on an annual basis in the first quarter of the 2025 fiscal year, which will be a slight slowdown in its Q4 performance. You expect a 13 % jump on an annual basis in profits to $ 0.90 per share at the mid -router, which is much lower than the consensus of $ 0.98 per share.
However, there is a possibility that Twilio revenues and profits will drop before expectations. This is because the demand for the communication tools that focus on the company for the company helps it win a greater share of customer portfolios, which encourages them to spend more money on its offers. This is evident from a rise in Twilio mutual statistics.
At the January Day offer this year, Twilio Management indicated that the number of active customers who buy additional products from the company jumped by 16 % on an annual basis in the third quarter of last year. This was an improvement in five percentage points seen in the previous quarter. More importantly, the chance of a cross -sale is still strong to move forward as well, bearing in mind that Twilio had more than 325,000 active customer accounts at the end of 2024.
Among them, 9,000 customers were building cloud communication tools focused on artificial intelligence using the Twilio platform last year. Therefore, there is still a large part of the current Twilio customer base, which is still on its solutions based on artificial intelligence-such as artificial intelligence assistants, behavior-working customer sharing tools, and predictive analysis tools-to help their customers improve sales transfer rates.
Twilio expects the demand for artificial intelligence tools in the market of Cloud Communications and the customer data platform markets (CDP) that increases its future processed market. It is estimated that the current markets of the company will give it an opportunity for the revenue that is capable of $ 119 billion by 2028. Artificial intelligence is expected to add another 39 billion dollars to this opportunity over the next three years.
In 2024, Twilio ended with less than $ 4.5 billion in revenue. Therefore, artificial intelligence can eventually help achieve significant growth in the upper and lower lines by helping Twilio to attract more customers, and also by enabling them to sell AI offers to existing customers. As such, you are not surprised by seeing the results of Twilio in the first quarter of 2025, which is scheduled to be released after the market was closed on May 1, overcoming expectations.
The opportunity for the additional revenue created by the artificial intelligence of twilio heralds good to direct it. Moreover, investors should not forget that the company expects a nice acceleration in its margins over the next three years, which may translate into strong growth in profits.
Twilio operating margins other than the generally accepted accounting principles in 2024 amounted to 16 %. The company expects this number to increase to a range of 21 % to 22 % in 2027. This seems to be investigating given the points discussed above, which is why investors can expect strong growth from the company to move forward.
The graph also tells us below, Twilio profits are expected to increase by 17 % in 2026 and about 22 % in 2027.
Assuming the increase of Twilio’s profits to $ 6.22 per share in 2027 and trades in line with the loaded technology Nasdaq-100 INDEX futures’ complications are 24 at the time (using the index as an alternative to technology shares), the arrow can reach $ 149. This indicates 69 % possible gains in the next three years.
Given that Twilio is now circulating with 20 times front profits, it seems that the time is right for investors to buy it. There can be a possible transformation in his wealth next month to run the road to run the bull in this cloud computing stock.
Before buying stocks in Twilio, think about this:
the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … Twilio was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at whenNetflixThis list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation,You will have 524,747 dollars! Or when NafidiaThis list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation,You will have 622,041 dollars!
Now, it is worth notingStock consultantAverage overall return792 %-outperforming the magical performance in the market compared to153 %For S&P 500. Don’t miss the latest 10 best list, available when joiningStock consultant.
*The stock consultant dates back from April 14, 2025
Hald Johann He has no position in any of the mentioned stocks. Motley is a lie that has positions in and recommended twilio. Motley deception has Disclosure.
