TWLO - Twilio Inc.

NYSE - NYSE Delayed Price. Currency in USD
134.18
-0.69 (-0.51%)
At close: 4:02PM EDT

134.18 0.00 (0.00%)
After hours: 7:54PM EDT

Stock chart is not supported by your current browser
Previous Close134.87
Open137.18
Bid134.01 x 800
Ask134.99 x 900
Day's Range133.55 - 139.50
52 Week Range53.37 - 151.00
Volume3,524,366
Avg. Volume4,115,143
Market Cap17.387B
Beta (3Y Monthly)1.32
PE Ratio (TTM)N/A
EPS (TTM)-1.31
Earnings DateAug 5, 2019 - Aug 9, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est148.02
Trade prices are not sourced from all markets
  • Twilio Inc. (TWLO) Dips More Than Broader Markets: What You Should Know
    Zacks5 hours ago

    Twilio Inc. (TWLO) Dips More Than Broader Markets: What You Should Know

    In the latest trading session, Twilio Inc. (TWLO) closed at $134.16, marking a -0.53% move from the previous day.

  • Benzinga7 hours ago

    Short Sellers Double Down On Twilio Following Rally

    Twilio Inc (NASDAQ: TWLO) shares have been on fire in the past year, gaining more than 147%. S3 analyst Ihor Dusaniwsky said short sellers initially cashed in on their post-IPO gains but have been steadily adding to their position ever since as Twilio shares make new highs. Twilio now has $1.58 billion of shares held short, roughly 10% of the stock’s float.

  • Should You Worry About Twilio Inc.'s (NYSE:TWLO) CEO Pay Cheque?
    Simply Wall St.2 days ago

    Should You Worry About Twilio Inc.'s (NYSE:TWLO) CEO Pay Cheque?

    Jeff Lawson became the CEO of Twilio Inc. (NYSE:TWLO) in 2008. This report will, first, examine the CEO compensation...

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  • Patience Is a Virtue: Let Twilio Stock Run
    InvestorPlace7 days ago

    Patience Is a Virtue: Let Twilio Stock Run

    Twilio (NYSE:TWLO) has been consistently making new 52-week highs throughout the year, earning its spot as a leading cloud communications platform, if not the leader. Such strength in the cloud computing sector has given TWLO resilience amidst recent trade-war-driven market swings. Therefore Twilio is a stock you want to have a position in.Source: Web Summit Via FlickrWith Twilio stock up 74% for the year, it may be tempting to think that now is a time to take profits, but with stocks that have significant momentum like Beyond Meat (NASDAQ:BYND), it behooves one to be patient.Let your winners run.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEven with Twilio's performance handily beating that of the Nasdaq, up 23% over the same period, there's room for more. Twilio Stock's Secondary Offering Is a Net BenefitSome market pundits have been critical of the secondary offering the company launched late last month. Yes, secondary offerings are dilutive to existing shareholders. However, the capital raise at that particular juncture was a shrewd move by management. * 6 Stocks Ready to Bounce on a Trade Deal Raising equity at top tick is difficult, but given strength in fundamentals and the stock itself, the estimated $750 million that the capital raise brought in will provide a war chest for the Twilio stock to sustain future growth. This is all to say that raising capital in a position of strength is a great move for shareholders.Even though shares fell on the day of the announcement, Twilio stock has rallied hard ever since.If Twilio were raising out of desperation or if there were exhaustion signals in the price action, I would be less bullish. The fact is that TWLO is dominating the communications software industry and will continue to extend that dominance with the cash raised. TWLO Stock's Huge First QuarterIt's worth remembering how good of a first quarter TWLO had. Total revenue increased 81% year-over-year and 14% quarter-over-quarter. The quarterly outlook for the next quarter of $262 million to $265 million seems conservative, meaning it should be an easy beat.Another important metric, Active Customer Accounts, showed an almost 3x increase year-over-year from 53,985 to 154,797, which is proof of just how compelling their in-app communications technology is. In tech, everyone touts ad nauseum that their product is "disruptive" and "game-changing."The numbers show that Twilio is doing just that. Big Fortune 500 companies count themselves as customers, and I expect that traction to grow pretty organically throughout the remainder of the fiscal year, driving major growth. The Bottom Line on Twilio StockWith a newly raised pile of cash, Twilio has options. It can funnel resources to grow both organically and inorganically. The acquisition of SendGrid demonstrates that these tuck-in acquisitions can really juice growth. Growth, of course, always has a price. Still, there are synergies to be had as Twilio consolidates its lead in customer engagement platforms.After the big run-up in the TWLO stock price, bullish targets set by sell-side firms like Needham ($140) have been taken out. But investors should stay patient. The inclination to take some money off the table is prudent, but sticking with Twilio stock at least through next quarter will likely prove rewarding.As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post Patience Is a Virtue: Let Twilio Stock Run appeared first on InvestorPlace.

  • Business Wire7 days ago

    Twilio Welcomes Jeff Immelt to Twilio Board of Directors

    Twilio (TWLO), the leading cloud communications platform, is pleased to welcome Jeff Immelt, former chairman and CEO of General Electric (GE) and current venture partner at New Enterprise Associates, to the Twilio Board of Directors. Immelt brings nearly 20 years of executive and boardroom experience at the helm of a world-leading global enterprise to Twilio. “Jeff is a world class leader with deep experience guiding global operations at scale,” said Jeff Lawson, CEO and co-founder of Twilio.

  • Is Twilio a Buy?
    Motley Fool8 days ago

    Is Twilio a Buy?

    The cloud-based communications specialist has been a six-bagger since the start of last year, but the party may not be over.

  • Twilio Inc. (TWLO) Outpaces Stock Market Gains: What You Should Know
    Zacks9 days ago

    Twilio Inc. (TWLO) Outpaces Stock Market Gains: What You Should Know

    In the latest trading session, Twilio Inc. (TWLO) closed at $142.32, marking a +1.14% move from the previous day.

  • 2 Reasons to Like Twilio Stock
    Schaeffer's Investment Research9 days ago

    2 Reasons to Like Twilio Stock

    Needham initiated coverage with a "buy" rating

  • TheStreet.com9 days ago

    Twilio Rises on New Buy Rating at Needham

    shares were rising Tuesday after Needham analyst Richard Valera initiated coverage of the San Francisco cloud-communications-platform provider with a buy rating. The firm set a price target of $165 on the stock, a 17% upside from its Monday closing price of $140.71, as Valera views Twilio as the leader in the communications-platform-as-a-service space. Valera said Twilio has generated an "exceptional" organic growth rate of more than 60% with no signs of slowing due to its ability to integrate into different types of digital communications within apps like Uber and Airbnb.

  • For Investors Who Missed Their Chance, Here’s Where to Buy Twilio Stock
    InvestorPlace13 days ago

    For Investors Who Missed Their Chance, Here’s Where to Buy Twilio Stock

    Twilio (NYSE:TWLO) stock is one of those names that draws a big "ugh!" from me when I look back over the long-term charts. Simply put, I had TWLO stock on the radar and let it fade away. Shares went from $30 to $90 in just a few months last year and that train has kept on moving.Some investors were wise enough to load up in the $20s, $30s and $40s after the post-IPO surge cooled down. I say wise because $90 was only a temporary top, with TWLO stock now another 50 points north of that.It brings up the all-too easy (and too familiar) question of, have investors missed their chance in Twilio stock?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Evaluating Twilio StockThe short answer is no. But the higher we bid the stock, the more risk we take as future returns are diminished. No one wants more risk and less reward, right? That line of thinking is traditional and makes sense in most circumstances.For me, I don't mind paying up a premium for a stock that's proven itself. I'd rather pay a premium for TWLO stock at $50 as it was surging higher and had momentum in its business, than buy at $30 two years ago when it had uncertainty surrounding it. * 7 Stocks to Buy for the Coming Recession Twilio stock running from $50 to $100, then $100 to $150 is big, but realistic. However, buying today -- at $140 a share -- we can't expect TWLO to run to $280, then $420 so fast. So what now? Valuing TWLO StockThere's no other way to put it: Twilio stock is not cheap. But there are plenty of stocks that weren't cheap that went on to have stellar moves and make long-time investors wealthy. Three that come to mind are Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Salesforce (NYSE:CRM).I'm not saying TWLO is necessarily the next one of those (these stocks might be), but with an almost-$19 billion market cap, there's still room for upside. For a company that's forecast to do $1.1 billion in sales this year, many investors will gag at the 16.3 times current revenue figure.Like I said, this name isn't cheap!But TWLO stock is turning profitable and while cash flows are not yet where I'd like to see them, the long-term trajectory is big for this company. Twilio's description reads, "Twilio Inc. provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications."In other words, this cloud-based platform is a key cog in many companies' customer communications strategy. That includes Uber (NYSE:UBER), Lyft (NASDAQ:LYFT), Airbnb and Salesforce. Have you seen the growth rate for these companies and then considered what that means for TWLO?It's not just them, either. Coca-Cola Enterprises, Twitter (NYSE:TWTR), Nordstrom (NYSE:JWN), VMWare (NYSE:VMW), the American Red Cross, Yelp (NYSE:YELP), Twitch, Lululemon Athletica (NASDAQ:LULU) and more are all TWLO customers.Analysts predict 70% revenue growth this year, but "just" 34% growth to $1.48 billion next year. That's still solid growth, but the declining rate of growth could be something that stalls the stock at this valuation. Let's look at the charts to get a better idea of what's going on. Trading TWLO Click to EnlargeWhile the slowing revenue growth rate in 2020 is a concern of mine, keep in mind Twilio's still in fiscal Q2 of 2019. More immediately though, Twilio stock just offered 7 million shares at $124 in a secondary offering. So far, the stock has done an incredible job of absorbing this excess supply, along with the shaking off the market selloff in May. * 7 Dark Horse Stocks Winning the Race in 2019 That said, there have been some cracks showing. Through Q1, the 20-day moving average was support. In Q2 that support faded and the 50-day moving average had to buoy TWLO stock. And while almost everything was under pressure by the end of May, this mark had technically given way for Twilio.All this is to say that I don't know how much we can count on the moving averages should we get a pullback. Twilio stock has been riding a multi-month channel filled with higher highs and higher lows. We should consider channel support to be support until proven otherwise.If it fails though, we could get the correction that sidelined bulls have been hoping for. We nailed the breakout over $100 in January and in March said Twilio stock is a buy on essentially any type of pullback. While those have paid off, we need to use more discipline now.Recently, dips below $125 have been gobbled up, while aggressive bulls will be buying on tests of the 50-day and channel support. Below that we have the 38.2% retracement at $112.27 and the 50% retracement near $101. In between is the 200-day moving average. I would love a dip to this area to consider a long position in Twilio stock.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Kenwell is long AMZN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post For Investors Who Missed Their Chance, Herea€™s Where to Buy Twilio Stock appeared first on InvestorPlace.

  • 3 Stocks That Have Doubled and Still Have Room to Grow
    Motley Fool14 days ago

    3 Stocks That Have Doubled and Still Have Room to Grow

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  • Twilio Inc. (TWLO) Gains As Market Dips: What You Should Know
    Zacks15 days ago

    Twilio Inc. (TWLO) Gains As Market Dips: What You Should Know

    Twilio Inc. (TWLO) closed at $143.03 in the latest trading session, marking a +1.66% move from the prior day.

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  • Twilio Is the Ringo Starr of the Cloud
    Motley Fool16 days ago

    Twilio Is the Ringo Starr of the Cloud

    Always present, rarely seen, and increasingly essential, the fast-growing tech company is slowly emerging as a cloud titan in its own right.

  • Business Wire16 days ago

    Mindy Kaling and Macklemore to Present at Twilio’s SIGNAL Conference in San Francisco

    Twilio (TWLO), the leading cloud communications platform, today announced that Mindy Kaling will join the company as a keynote speaker and Macklemore will perform at SIGNAL, its annual customer and developer conference on Aug. 6 and 7, 2019. Now in its fifth year, SIGNAL will be held for the first time at The George R. Moscone Convention Center West in San Francisco.

  • Twilio Has Reached Another All-Time High
    Market Realist17 days ago

    Twilio Has Reached Another All-Time High

    The Latest on Amazon, Microsoft, Twilio, and More(Continued from Prior Part)Twilio has seen tremendous growth in recent quartersCloud communication company Twilio (TWLO) continues to surge. The stock made another all-time high on June 7 when it

  • Twilio Stock Could Be Hurt by Increased Competition
    InvestorPlace20 days ago

    Twilio Stock Could Be Hurt by Increased Competition

    I often talk about "vision premiums," or elevated valuations that are given to hot stocks. At this time, arguably no equity defines that premium better than Twilio (NYSE:TWLO) stock.Source: Web Summit Via FlickrBolstered by the leadership status of TWLO's communication platform-as-a-service (CPaaS), Twilio stock has climbed to elevated valuations amid the company's massive growth. However, the expensiveness of both the company's service and Twilio stock could drive its customers and investors to alternative options. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% Investors Continue to Ignore the Sky-High Multiple on Twilio StockFirst, I will point out that a stock can stay "expensive" from a price-earnings (PE) ratio standpoint for a long time. This is especially true when a firm seen as the company of the future launches new technologies or lines of business. Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), and many cannabis stocks have proven that point over the last few years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, once a stock has reached such levels, buying it becomes a bet that somebody will willingly pay more in the future. The higher the multiple, the less likely one is to find such a buyer.Expensive stocks sometimes keep moving higher. That pattern could play out with Twilio stock, which has risen by about 575% since December 2017. However, given Twilio stock's forward PE ratio of over 490, that is not a bet I endorse. Profit Deceleration, Competition Could Weigh on the Valuation of Twilio StockTWLO's profit growth, while impressive in a general sense, appears meager when compared to the multiple of TWLO stock. Headwinds will limit its profit growth to an estimated 9.1% this year. Things should improve next year, as its earnings will jump 141.7%, according to the consensus estimate. Still, that level of growth should also prove to be temporary, as analysts foresee average annual growth of 33.2% per year for the subsequent five years.Moreover, Twilio stock no longer remains the only CPaaS name that investors can buy. Bandwidth Inc. (NASDAQ:BAND) launched its IPO last year. It trades at only 8.2 times its sales, compared to more than 25 times sales for TWLO.Investors can also choose a much safer CPaaS stock. As InvestorPlace columnist James Brumley pointed out, Cisco (NASDAQ:CSCO) has begun to compete in this business. CSCO's $34.64 billion cash hoard will allow it to easily outspend Twilio. CSCO's profit is growing at a double-digit percentage rate, and CSCO stock has a forward PE, based on the consensus EPS outlook, of only 16.5. Twilio's Services Are Also Perceived as PriceyMoreover, the prices that Twilio charges for its services have become too expensive for some.Unfortunately for the company, the CPaaS industry has a low barrier to entry, and lesser-known peers have hurt TWLO in the past. Investors hammered Twilio stock in 2017 when Uber (NYSE:UBER) moved to reduce its dependence on the company.Given the strong growth of CPaaS,I do not think increased competition will lead to an overall reduction in Twilio's customer base or revenues. However, new entrants -- particularly an established, profitable entrant such as Cisco -- could slow Twilio's growth and will likely create pricing pressure. The Bottom Line on Twilio StockAlthough Twilio stock can deliver much of the massive growth it promises, investors and customers who find Twilio too expensive can turn to lower-cost options. TWLO stock has benefited from the company's leading position in the CPaaS industry. It may even exceed analysts' consensus revenue growth projection of 70% for the current fiscal year.However, with Twilio stock trading at over 490 times its earnings, this cloud company has moved into the stratosphere. Also, large customers have shown a willingness to abandon the platform. The company faces competition from upstarts such as Bandwidth and well-funded, established tech companies such as Cisco. Even in a world where PE ratios don't matter much, TWLO stock is more likely a sell than a buy under these conditions.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% * 7 Stocks to Buy That Don't Care About Tariffs * 5 Healthcare Stocks to Pick Up From the Wreckage Compare Brokers The post Twilio Stock Could Be Hurt by Increased Competition appeared first on InvestorPlace.

  • Hedge Funds Have Never Been This Bullish On Twilio Inc. (TWLO)
    Insider Monkey21 days ago

    Hedge Funds Have Never Been This Bullish On Twilio Inc. (TWLO)

    The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]

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  • 3 Reasons Why You Should Sell Twilio Stock Now
    InvestorPlace21 days ago

    3 Reasons Why You Should Sell Twilio Stock Now

    Twilio (NYSE:TWLO) has delivered breathtaking returns over the past year. At the start of 2018, Twilio stock sold for just $25. It's managed to more than quintuple since then, with TWLO stock jumping 6.53% yesterday.But the good times could come to an end in a hurry. Twilio faces multiple headwinds that will stop the stock's meteoric run. For one, TWLO stock could get caught in the government's big tech antitrust crackdown. Second, its core business is unlikely to keep growing nearly as much in future years. And finally, after such a huge move, the valuation of the shares is rather aggressive.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Antitrust Concerns to Hit Tech StocksOver the weekend, news came out that the government is running an antitrust probe against Alphabet (NASDAQ:GOOGL). On Monday, this quickly spread to Facebook (NASDAQ:FB) and other tech giants. Not surprisingly, the FANG stocks got routed on Monday before recovering somewhat with Tuesday's euphoric market recovery.Still, there's a great deal of concern about what will happen with big tech now that the government is investigating. It's particularly worrisome for the sector since there appears to be bipartisan support for cracking down on the largest tech firms. * 7 Bank Stocks to Leave in the Vault You may be asking, what does that have to do with Twilio stock? It matters because SaaS stocks could see their valuations get crushed. Generally, SaaS companies are run with one of two strategies in mind. The first is to become the dominant force in a particular application and then raise prices as competition fades. Salesforce (NYSE:CRM) is a classic example. The company still generates little in the way of accounting profits, but absolutely dominates its business. CRM stock is up 3,500% since its IPO. However, if they try to exploit their dominant market position, the government may start scrutinizing them as well.The second strategy for SaaS companies is to sell to a bigger player. However, once your business gets large enough, there is only a limited pool of firms with the resources to make acquisitions. And now many of those firms will be in the penalty box, as they try to stay under the radar to avoid the government scrutiny bringing anti-monopoly charges against them. A basket of SaaS stocks fell more than 5% on Monday, and rightfully so. Valuation multiples for the sector -- including Twilio stock -- will sink if the government's antitrust efforts have any teeth. Stagnant MarketsA key problem for Twilio is that its core business isn't a particularly attractive one. Prior to the Sendgrid acquisition, 90% of revenues came from traditional phone services. The company primarily makes its money selling programmable text and voice assistance to marketers. The problem with that as a core operation should be apparent.People are using their phones less and less for voice. Folks are overwhelmed with robocalls and as a result the value of voice marketing has stagnated and may be starting to decline. Similarly, text messages aren't nearly as hot an area as they were a few years ago. Data usage is exploding, and in doing so, is replacing many functions that used to be handled by voice or text.These businesses certainly won't disappear overnight, but they're not the sort of wide runway growth fields that we traditionally associate with stocks in this sector.The $2 billion Sendgrid acquisition earlier this year helps matters to some extent as it significantly diversifies the business. Unfortunately, its primary business, facilitating e-mail marketing, is quite mature as well. Email marketing will probably have better longevity than voice and text, but it's not going to be a high growth field forever either. Crazy ValuationThe massive rise in Twilio stock has far outpaced the business' fundamentals. Once Twilio stock dropped after its IPO, it settled into a trading range around 7-8x sales. That's a reasonable multiple for a SaaS company, particularly one whose business has less upside than the field as a whole. 10x sales would be a more optimistic but still defensible valuation for the business. * 6 Big Dividend Stocks to Buy as Yields Plunge Twilio stock is now selling at an insane 24.1x sales, however. Yes, I know the company has a huge year-over-year posted revenue growth rate of 70%. But acquisitions helped boost that. Analysts see revenue growth dropping to 34% next year and then 26% the year after.That's simply not fast enough growth to justify the insane sales price multiple. You can buy something like Alteryx (NYSE:AYX), which is in the sexier field of data science, prediction, and analytics at 19.4x sales. And Alteryx consistently runs something like 50% annual revenues growth while being slightly more profitable than Twilio. It's highly unlikely that Twilio stock will be able to maintain a higher P/S ratio than other SaaS companies which are growing more quickly. TWLO Stock VerdictMy InvestorPlace colleague James Brumley recently published a thoughtful article about the risks at Twilio. I agree with his assessment, in particular, he highlights that the company continues to lose money on a GAAP basis despite the rapid growth rate. Additionally, cash flow has turned negative again after a brief period above zero.As Brumley notes, at some point Twilio needs to start generating real and consistent profits and cash flow for shareholders or the valuation will shrivel up. Particularly as competition is heating up in some of Twilio's business segments, Twilio needs to figure out some way to boost profit margins. Now with the government cracking down on big tech, this could be the catalyst that causes TWLO stock's massive rally to fall apart.At the time of this writing, Ian Bezek owned FB stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post 3 Reasons Why You Should Sell Twilio Stock Now appeared first on InvestorPlace.

  • Microsoft, Lululemon Lead 5 Top Stocks Making This Bullish Move
    Investor's Business Daily22 days ago

    Microsoft, Lululemon Lead 5 Top Stocks Making This Bullish Move

    Microsoft, Lululemon, CSX, Twilio and TransDigm are large-cap leaders that have rebounded from recent slides to regain their 50-day moving averages.

  • Shopify Stock Has a Dip Coming, and You Definitely Should Buy into It
    InvestorPlace22 days ago

    Shopify Stock Has a Dip Coming, and You Definitely Should Buy into It

    If you were to only look at shares of Shopify (NASDAQ:SHOP), you probably wouldn't know anything is wrong. For instance, the escalating trade war with China and now Mexico would not be a worry. Given how well Shopify stock has done over the past month, many observers might also overlook the fact that the S&P 500 has been down for four straight weeks.Source: Shopify via FlickrThere's no other way to put it: Shopify stock has been an unstoppable beast. Shares are still consolidating near the recent highs after more than doubling from its December lows and is up more than 130% in just over five months.At some point though, SHOP has to get off the rocket ship. That's just the way it is. Timing that departure is a lot harder than it seems though, given that it can happen very quickly and in a very painful fashion. Just see Nvidia (NASDAQ:NVDA) for proof.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat brings up the question of, should investors buy Shopify stock at $250? * 6 Big Dividend Stocks to Buy as Yields Plunge Trading Shopify Stock Click to EnlargeSHOP stock price is backing off the $290 highs it was pushing last week. The fact that the stock can continue pushing new highs in this environment is incredible.I loved this name on its $155 breakout and subsequent retest where it held the 10-week moving average (purple arrow). But I didn't expect another $100+ to come so quickly.There's a lot of doubt surrounding this name thanks to its high valuation. Many argue, as they do for The Trade Desk (NASDAQ:TTD), Roku (NASDAQ:ROKU), Twilio (NYSE:TWLO) and other high-growth stocks, that Shopify stock is overvalued. They say the stock price can't support the business and that it's destined for collapse.The only problem with that theory? These shares double, triple, quadruple and more, all while these worries persist. Not being able to value it by traditional metrics makes it difficult to price a name like Shopify, but not impossible. Further, these stocks tend to get hammered during market-wide corrections.SHOP stock stood up stronger than its high-growth peers but still came in about 30% from the Q4 highs. A similar correction would bring us to $200 a share should we get similar summer volatility. That would likely be a solid buying opportunity, although many investors would still balk at that price.Unless the market really starts to implode though, it could be a while before we see SHOP stock this cheap. How about $250 then? Shares are down over 3% to start the week, down to $265. Another few days like that and $250 could be right around the corner. That would bring Shopify down to the 10-week moving average. This moving average has been guiding shares higher for all of 2019.This level needs to give way before any further downside is seen. Bottom Line on Shopify StockAggressive bulls will likely gravitate to SHOP stock at $250. This would represent a 12.5% decline from the highs. That said, if the market is turbulent enough, Shopify is sure to get hit harder than that. If it does, the 50-day moving average currently near $238 could come into play, while the May lows of $242 may also buoy the name.Below those marks and maybe we get the slippery-slope decline down to $200-ish.Understand one thing though. When companies cement themselves behind a strong brand with impressive growth, investors will almost always pay a premium. As for growth, SHOP stock has it.Estimates call for last year's revenue of $1.07 billion to grow 41% to $1.51 billion this year. 2020 estimates call for 32.5% growth to $2.01 billion in sales. Essentially, Shopify is forecast to double its revenue from 2018 to 2020. Better than that is its earnings growth, though.Estimates call for earnings of 58 cents per share this year, up 52.5% year-over-year from 38 cents per share. In 2020, forecasts call for earnings of 94 cents per share, up 62%. Even better though, the company has a solid balance sheet and is turning free cash flow (FCF) positive. Cash and short-term investments stand at about $2 billion, with just $100 million in long-term debt.At almost 20 times this year's revenue and near FCF neutral, I'm not making the case that SHOP stock is cheap. But it's a name for growth investors to own should they be able to scoop it up on a steep discount. Conservative growth bulls may bite at $250, but will certainly be interested near $200. Let's see how it does this summer.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long TTD and ROKU. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Sell Impacted by the Mexican Tariffs * 6 Big Dividend Stocks to Buy as Yields Plunge * The 10 Biggest Announcements From Apple WWDC 2019 Compare Brokers The post Shopify Stock Has a Dip Coming, and You Definitely Should Buy into It appeared first on InvestorPlace.

  • Why Twilio Stock Can Keep Running Higher
    InvestorPlace22 days ago

    Why Twilio Stock Can Keep Running Higher

    Alongside the rest of the market, shares of hyper-growth cloud-communications company Twilio (NASDAQ:TWLO) dropped sharply in May. As a result of the broader weakness, Twilio stock now trades at roughly 15% off its 2019 highs.Source: Web Summit Via FlickrOstensibly, this selloff makes sense. The global economic growth picture is deteriorating thanks to rising international trade tensions. As that narrative sank, financial market conditions have become less favorable for growth stocks. Unquestionably, that characterization describes TWLO stock. As such, it makes some sense that shares are down big over the past few weeks.But upon closer inspection, the selloff actually doesn't make that much sense.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe factors dragging financial markets lower aren't really relevant to Twilio. Instead, TWLO stock is just falling in sympathy with the market and its fellow growth stocks. In actuality, the growth trajectory here remains exceptionally favorable for the long haul.To be sure, the valuation on Twilio stock is stretched here. It is not unreasonable to see shares fall to rational levels. But I want to emphasize that this selloff is temporary. * 6 Big Dividend Stocks to Buy as Yields Plunge Once the valuation comes in some, investors will realize the same fundamentals that initially catapulted TWLO stock remains intact. Therefore, you can expect shares to rebound substantially, getting back to its winning ways. The Negatives Against Twilio Stock Are OverstatedRight now, the market is lumping Twilio stock into a basket of high-growth equities vulnerable to mass-scale shifts. But that sweeping categorization is inappropriate.There are four factors which are weighing on equities at the current moment: rising trade tensions, a slowing global economy, low interest rates and the threat of government regulation. None of these factors apply in a harmful way to TWLO stock.On the trade front, Twilio is largely exempt from the threat of tariffs since this is a services company with a primarily domestic growth narrative. Tariffs on imported products are largely meaningless for Twilio.Meanwhile, while higher tariffs could reduce economic growth globally, cloud companies like Twilio could benefit in a slower growth environment. That's because they are low-cost solutions which enterprises could increasingly turn to when rethinking budgets and corporate spend.With respect to plunging yields, low interest rates actually help hyper-growth stocks with outsized valuations like Twilio by making their returns look relatively more attractive. Lastly, while big tech companies are under the regulation microscope, Twilio is far from being big or dominant enough to warrant any regulatory attention.All in all, then, the potential risks to the Twilio growth narrative and TWLO stock are presently overstated. The Core Growth Narrative Remains HealthyLooking past the overstated risks, the core growth narrative supporting Twilio stocks remains as healthy as ever. Indeed, it might even be healthier.In late April, Twilio reported jaw-dropping first-quarter numbers that underscored the strength of this company's secular revenue engine. Sales growth exceeded 80% year-over-year. Core revenue growth was closer to 90%. Customers more than doubled YOY. Gross margins remained well north of 50%. Operating leverage kicked, and an operating loss in the year ago quarter turned into a profit this quarter.Broadly, the numbers were really good: Big revenue growth combined with big customer growth. Stable and outsized gross margins. Falling opex rates. Ramping profits. All the boxes were checked off.Zooming out, all those boxes should continue to be checked off for the foreseeable future. Businesses are increasingly seeking to differentiate their customer experiences. An important part of that differentiation is the ability to communicate dynamically and in real time with customers through the mobile channel. Twilio enables this communication. Sure, there are lots of competitors in the space. But Twilio's growth rates imply that there aren't any competitors quite as good.This space is still relatively small today. Twilio only has about 155,000 customer accounts. There are over 30 million businesses in the U.S. who could use Twilio's services. Additionally, more than 100 million international firms could benefit. As such, this growth narrative is in the top of the first inning. As the game plays out over the next several quarters, growth rates will remain large and profits will surge higher.Most importantly, Twilio stock will get back to its winning ways. Bottom Line on TWLO StockThe market is having trouble right now because rising trade tensions threaten economic growth globally. But Twilio is one of the few growth stocks that doesn't have much exposure to these trade risks. Therefore, the growth narrative here will remain healthy. As the numbers prove this over the next few quarters, Twilio stock should bounce back from its recent selloff.As of this writing, Luke Lango was long TWLO. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Sell Impacted by the Mexican Tariffs * 6 Big Dividend Stocks to Buy as Yields Plunge * The 10 Biggest Announcements From Apple WWDC 2019 Compare Brokers The post Why Twilio Stock Can Keep Running Higher appeared first on InvestorPlace.