IB Net Payout Yields Model

Twilio: Too Far, Too Fast

 


  • Twilio's stock has surged over 100% recently, driven by excitement around its 2025 financial targets, but the growth outlook remains modest at 7%-8%.
  • The company aims for $825-$850 million in free cash flow by 2025, with operating margins improving from 16% in 2024 to 21% by 2027.
  • Analysts have raised price targets towards the current price, but the stock may stagnate as the market shifts focus from 2027 projections back to current year targets.
  • The stock trades at over 20x 2027 EPS targets, limiting future upside after this big rally.
Twilio, Inc. (NYSE:TWLO) has soared due to excitement surrounding financial targets for the next 3 years. The CPaaS stock has now soared far over 100% in the last few months on rather limited changes to the financial picture. My investment thesis is still Neutral on the stock after this massive rally, looking towards an exit on further gains.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. 

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