From Nasdaq: 2025-06-05 09:46:00

Twilio Inc. (TWLO) has outperformed the Internet Software industry with an 18.8% gain in the past month, surpassing giants like Amazon, Cisco, and Microsoft. Investors are confident in Twilio’s long-term prospects due to its strong fundamentals and leadership in customer engagement, making it a buy for now.

Twilio’s stronghold in the customer engagement market is fueled by its AI-powered solutions like Twilio Verify and Voice Intelligence, as well as the rapidly growing Twilio Segment. As businesses embrace AI for better customer experiences, Twilio’s platforms are poised to benefit from this trend, making it a worthwhile investment despite short-term challenges.

Twilio’s API-first model sets it apart from tech rivals, allowing for customizable communication experiences that appeal to a wide range of customers. With a global reach across 180+ countries and deep integration across messaging, voice, email, and video, Twilio offers comprehensive customer engagement solutions that enhance its long-term growth prospects.

Twilio’s financials back up its growth story, with strong year-over-year EPS growth and revenue increase in the first quarter of 2025. The company’s dollar-based net expansion rate, active customer accounts, and solid balance sheet demonstrate its financial stability and ability to fund growth initiatives, making it an attractive investment option.

Despite its strong growth, Twilio stock remains reasonably priced with a forward P/S multiple lower than the industry average. Compared to competitors in the cloud communication space, Twilio’s valuation is attractive, making it a compelling buy for investors looking for long-term value and growth potential. With a Zacks Rank #2 (Buy), now is a good time to consider investing in TWLO stock.



Read more at Nasdaq: Twilio Soars 19% in a Month: Should Investors Buy the Stock Now?