Twilio stock drops 18% YTD but long-term growth potential remains strong

From Nasdaq: 2025-04-16 15:00:00

Twilio Inc. (TWLO) stock has dropped 18.2% year to date, worse than the Internet – Software industry’s 11% decline. Despite tough times, Twilio’s long-term growth story remains strong, making a case for holding onto the stock. The recent slump is due to tech pullback, missed earnings, and weak profit outlook.

Twilio’s near-term challenges haven’t diminished its long-term potential. The company’s investments in AI, customer engagement solutions, and loyal customer base support its growth. Twilio’s leadership in customer engagement, AI capabilities, and financial strength make it a solid hold through market volatility and short-term headwinds.

Twilio’s financial performance remains robust, with 16.3% year-over-year EPS growth and a solid balance sheet. The company’s strong cash flow allowed for share repurchases and dividend payments. Twilio’s discounted valuation compared to industry peers and solid financials justify holding onto the stock for patient investors despite recent struggles.

Twilio’s API-first approach differentiates it from competitors, offering customizable solutions for businesses. Its global reach, customer stickiness, and comprehensive engagement solutions position Twilio for long-term growth. The company’s financial stability, strong cash flow, and strategic positioning make it a compelling investment despite current market challenges.



Read more at Nasdaq: Twilio Plunges 18% YTD: Is TWLO Stock Still Worth Retaining?