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  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....

  Twilio reported a surprise profit when reporting Q4'22 earnings last week, but the stock has sold off the last couple of trading days. The customer engagement platform has now reduced 26% of the workforce and is focusing on profitable growth and self-serve communications sales. The stock is cheap at 2x EV/2023 sales while the company is busy repurchasing $1 billion worth of shares. Twilio  ( NYSE: TWLO ) initially soared following  mixed Q4'22 results . Cleary, the market appeared to prefer the shift in the business to a profitable future after a large amount of investors questioned whether the customer engagement company  could ever be profitable. My  investment thesis  remains Bullish on the stock, though the company has clearly reigned in growth opportunities going forward possibly leading to the delayed sell off. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  

  Zoom beat FQ2'22 analyst targets, but the size of quarterly beats continues to trend downwards. The company forecast FQ3'22 revenues to decline sequentially in further signs of a slowdown in business. The stock headed into the quarter trading at 20x forward sales while the future growth rates don't warrant this valuation. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street.  Learn More » A lot of individual investors didn't want to listen, but  Zoom Video  Communications  ( ZM ) faced nearly impossible comps due to pulled  forward  demand. In  addition, the recent deal to acquire  Five9  ( FIVN ) is exactly what companies do in order to replace stalling growth. My  investment thesis  remains very Bearish on the stock not correctly priced for the new normalized, post- Covid  phase. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the dis...

Twilio has a market valuation already at $15 billion. Revenue per share is only forecasted to growth at 29% in 2019. Massive share dilution has captured a vast majority of the recent revenue growth, limiting benefits to shareholders. The stock trades at a peak valuation near $100 of 10x '20 sales estimates. For the last couple of months,  Twilio  ( TWLO ) has been stuck around $100. After absorbing the SendGrid acquisition, my  investment thesis  was negative on the stock, based on a trend towards investors chasing revenue expansion and fading stocks with decelerating revenue growth. As 2019 ends, the company is on a path towards normalized revenue growth, and the question is what is the appropriate valuation for a stock with 30% growth, not something wild like 70% growth officially reported in the last quarter. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details....

Twilio (TWLO) just reported a quarter where revenues grew 77%, yet the guidance suggests 2019 revenue growth of only 35%. Part of the issue is the inclusion of slower growing SendGrid (SEND) in the 2019 results.

Twilio proposed a secondary offering of $400 million led primarily by selling shareholders. The valuation of the company is now $6 billion based on the fully diluted share count while revenue expectations are only $255 million. Investors should not buy from insiders dumping shares at inflated valuations. After the close on a Friday, Twilio (NYSE: TWLO ) snuck out a  proposed secondary  despite only completing an IPO about four months ago. The communications software provider has seen the stock rocket since going public. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details.