Why Twilio Stock Just Crashed 16.5%

From Nasdaq: 2025-02-14 12:23:52

Twilio (NYSE: TWLO) stock dropped 16.5% after reporting Q4 2024 earnings. Sales of $1.19 billion slightly exceeded expectations, but earnings of $1 per share fell short. Despite a $0.08 per share loss on a GAAP basis, Twilio generated $657 million in free cash flow for the year. Management forecasts FCF to reach $825-850 million in 2025, implying 29% growth. Investors may see the sell-off as a buying opportunity, as the stock trades at about 29 times FCF. The Motley Fool’s Stock Advisor did not include Twilio in its top 10 stock picks, emphasizing the potential for significant returns elsewhere.



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