|Bid||121.85 x 1800|
|Ask||122.20 x 1400|
|Day's Range||118.56 - 123.00|
|52 Week Range||39.59 - 136.00|
|Beta (3Y Monthly)||1.33|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 6, 2019 - May 10, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||130.45|
After several tireless days we have finished crunching the numbers from nearly 750 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms' equity portfolios as of December 31. The results of that effort will be put on display in this article, as […]
The premium on Twilio (NYSE:TWLO) continues to increasingly draw attention. Despite warnings about valuation coming from multiple quarters, Twilio stock has recovered quickly from all of its temporary pullbacks over the last 16 months. Consequently, this has taken TWLO stock to multiples that worry investors not typically concerned with value.With any path to higher stock prices becoming more unpredictable, investors should avoid this equity for now. Trading on Vision PremiumTwilio has come to dominate the platform-as-a-service (PaaS) market. Given that so many mobile apps rely on the company's product, the company appears poised to become one of the more essential tech firms. The upshot is that Twilio stock trades with what I call a "vision premium" -- that is, companies that bring cutting-edge technologies and trade on potential future earnings rather than the multiples of today.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTwilio's vision premium has taken its forward price-to-earnings (PE) to an astronomical 437 times earnings. As a result, both my InvestorPlace peers and I have cautioned traders not to buy at these levels. * 10 S&P 500 Stocks to Weather the Earnings Storm Admittedly, Twilio dominates the PaaS niche. Also, the fact that Twilio stock has become very expensive will not necessarily take the shares down. Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) moved higher for years despite supporting triple-digit PE ratios at times.My colleague Bret Kenwell calls TWLO stock a "buy on any pullback." He points to several instances where buying at near-term bottoms led to massive profits. This thesis may continue to prove correct. Voting, Weighing and Twilio StockUnfortunately, when a stock trades well into triple-digit multiples, "predicting" begins and ends with the limits of charting. Moreover, when looking at this, I find myself turning to a quote from Warren Buffett's mentor, Benjamin Graham."In the short run, the market is a voting machine, but in the long run, it is a weighing machine."The "weighty" factors which could affect Twilio stock extend beyond the fact that TWLO trades at about 23.4x sales and more than 28x its book value. We also trade in the 11th year of a bull market, making a stock selloff more likely. With no fundamentals to support its value, Twilio might bear the brunt of such a downturn.Also, traders should consider the history of past tech leaders. Cisco (NASDAQ:CSCO) lost about 90% of its value after becoming one of the more popular tech equities of the dot-com boom. Assuming a company survives such a stock loss, the effects of these high valuations can also last for decades. Cisco still has not recovered its 2000 high more than 19 years after the dot-com bubble reached its peak. Many high-flying tech stocks have and will continue to face similar situations. Competitive Threats RemainMoreover, while Twilio has become the dominant PaaS company, competitors such as Zendesk (NYSE:ZEN) and RingCentral (NYSE:RNG) do exist. These PaaS providers hurt Twilio stock last year when Uber announced that they would look at other PaaS companies. Twilio stock recovered when the company expanded its product and service offerings. However, TWLO could face further trouble if large, deep-pocketed cloud companies such as Microsoft (NASDAQ:MSFT) or Amazon decide to compete in this space. * 7 High-Risk Stocks With Big Potential Rewards As things stand now, Twilio stock trades at about 9.6% below its 52-week high. A move higher remains possible. Still, considering its situation, I see more factors that could bring about a pullback than inspire a recovery. Bottom Line on Twilio StockTwilio stock lacks a predictable path to further share price increases in the near term. Given that valuation has not influenced the price of TWLO, it could rise from these levels. For now, TWLO stock commands a vision premium, and the likelihood that it will dominate this up-and-coming industry drives this stock for now. Still, at some point, valuation matters. With forward PE ratios well into the triple digits, TWLO appears more likely to attract more weight than votes.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 * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post Avoid Twilio Stock As Long As Valuations Remain Stratospheric appeared first on InvestorPlace.
Snap's (SNAP) first-quarter results are expected to benefit from initiatives related to original shows and e-commerce amid stiff competition.
Software stocks jumped in the first quarter of 2019, repeating a pattern from the prior two years. The big question is whether premium valuations can be sustained amid worries over growth.
Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and investors' positions as of the end of the fourth quarter. You can find write-ups about an individual hedge fund's trades on numerous financial news websites. […]
Twilio (TWLO), the leading cloud communications platform, today announced that it will report its financial results for the first quarter ended March 31, 2019 after market close on Tuesday, April 30, 2019. Twilio will host a conference call and live webcast to discuss the results. The conference call will begin at 2 PM Pacific Time (5 PM Eastern Time) on Tuesday, April 30, 2019.
One of the market's best-performing stocks over the past several quarters has been software giant Twilio (NASDAQ:TWLO), and with good reason.Source: Web Summit Via FlickrTwilio stock is up more than 300% over the past two years. The company has pioneered a new market called Communication Platforms-as-a-Service (CPaaS), which essentially gives enterprises the ability to communicate in real-time via voice, text, and video with their customers.Enterprises love this market, and Twilio is the king of the market. Consequently, as the CPaaS market has exploded higher over the past two years, so has Twilio's revenue and customer base, causing Twilio stock to soar.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Marijuana Companies: Which Pot Stocks Should You Buy? This trend should continue in the long-run. TWLO is the unrivaled king of a non-cyclical growth market with huge potential. The company also has healthy gross margins, and significant room for operating-spending leverage. As a result, Twilio is clearly poised to generate robust revenue and profit growth over the next several years. That combination will ultimately drive Twilio stock meaningfully higher in the long-run.But in the short-term, valuation concerns related to TWLO stock are warranted, and that may put a lid on Twilio stock in the near-term.Valuation concerns are nothing new for Twilio stock. Bears were concerned about valuation when Twilio was a $30 stock. No,it's a $125 stock. Clearly, TWLO stock has been able to shrug off valuation concerns in the past. That may very well continue to happen as investors concentrate on the long-term outlook of TWLO stock.Nonetheless, investors should be cautious about TWLO. Twilio stock is a long-term winner. But in the near-term, investors will be concerned about the stock's valuation at its current levels, and as a result, on any operational hiccup, TWLO stock could be weak. The Long Term Outlook Is PromisingThe CPaaS market is the future, and that bodes well for TWLO stock's long term potential.We live in a world in which everyone is connected via phones, and phones are used primarily for real-time communication (think texts, push notifications, and the like). Consequently, it is increasingly important for enterprises to reach their customers through real-time communication, in order to maximize reach and awareness.CPaaS enables enterprises to do that by giving them real-time communication tools they can use to reach their customers via messages, voice, and video. For example, Uber can text its customers when their rides are close, and Postmates texts its customers when their food is close to being delivered.CPaaS is all about consumer-facing companies communicating directly and dynamically with their customers, in order to personalize and enhance their customers' experience.That is the future. And TWLO is pioneering this future with the industry's best CPaaS solution. That's why this company has consistently reported revenue growth north of 50%, customer growth north of 30%, and retention rates north of 95%.But TWLO only has roughly 60,000 customers. There are well over 100 million businesses globally. Not all of them will tap into the CPaaS market, but it's clear that Twilio is in the first inning of a huge growth opportunity. Indeed, IDC thinks that the CPaaS market is just getting started. Revenues across the space in 2017 were $2 billion, and its revenues in 2022 are expected to come in at $10.9 billion.Consequently, as long as Twilio remains the leader of the CPaaS market, this company should grow rapidly for a long time. That huge growth will power TWLO stock higher over the long-run. The $125 Price Tag Is a Stretch for NowAlthough TWLO's long-term growth outlook is powerful, in the near-term, concerns about the valuation of Twilio stock are warranted. That's because, even if we assume that TWLO will grow a great deal over the long-term, the current price of Twilio stock seems stretched.Using numbers from IDC and Twilio, it's easy to see that Twilio's share of the CPaaS market has dropped as the market has matured over the past few years. That makes sense.Back in 2015, TWLO was largely the only real player in the market. Since then, multiple companies have entered the market , and as those new players have jumped onto the scene, Twilio's market share has dropped. That's natural and nothing to worry about.Based on the latest available data, from 2017, Twilio controls about 20% of the CPaaS market. In a best-case scenario, as the market matures and the number of new players drops, Twilio will be able to increase its market share to 25%.IDC thinks this market will be worth over $10 billion by 2022, up more than 500% from 2017. Assuming growth slows but remains robust, the CPaaS market could easily double between 2022 and 2025 and hit $20 billion.If TWLO's market share reaches 25% when the market is worth $20 billion, its top line would reach $5 billion. Assuming its gross margins expand towards 60%, and its operating-spending rate normalizes lower to 35%, then 25% operating margins seem doable by 2025. In that scenario, its operating profits would be $1 billion.That could easily result in earnings per share of $5 That's up dramatically from this year's projected EPS of 10 cents. But, it's still not enough to warrant a price per share of $125 . Based on a forward price-earnings multiple of 37, which is average for application software companies, that implies a reasonable 2024 price target for Twilio stock of $185. Discounted back by 10% per year, that equates to a 2019 price target of under $115. The Bottom Line on Twilio StockTWLO stock is a long-term winner. But near-term concerns about its valuation are very well-founded, and will likely limit the advances of TWLO stock for the foreseeable future.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Twilio Stock Is a Long-Term Winner, But Valuation Concerns Are Warranted appeared first on InvestorPlace.
Zscaler, Twilio, Okta and other cloud computing favorites sport very high multiples as tech investors crowd into growth names. They need to cool off before they can go higher.
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! Twilio Inc.'s (NYSE:TWLO) released its most recent earnings update in December 2018, which revealed...
Twilio (TWLO), the leading cloud communications platform, today introduced new Expert Service offerings from Twilio SendGrid that provide customers with options for additional support, education, detailed data and analytics, and expert guidance to help optimize their email programs and drive business results. Now, customers of all sizes can increase their return on investment for their email programs with a variety of consulting, data analysis and managed service packages that work best for them.
Salesforce CEO Marc Benioff and Twitter and Square CEO Jack Dorsey both support a homeless Navigation Center in San Francisco that has inspired two warring GoFundMe pages. The two had previously been on opposite sides in a debate over a tax on big businesses to fight San Francisco's homelessness problem. Salesforce CRM CEO Marc Benioff and Twitter TWTR and Square SQ CEO Jack Dorsey both appear to have donated to a GoFundMe page supporting a proposed Navigation Center.
Twilio Inc. (TWLO), the leading cloud communications platform, today announced it has launched an app on Salesforce AppExchange that allows organizations using Salesforce to easily send and receive SMS messages directly from their Salesforce CRM. Hundreds of customers, including LiveDifferent, Philadelphia School Partnership, and CauseMic are already using Twilio for Salesforce to engage their customers and constituents.
A fool and his money were lucky to get together in the first place. This version of the "greater fool" theory is being put into practice again March 29, as Lyft (NASDAQ:LYFT) makes its public debut at $87.24.Source: Shutterstock You don't have to read the company's S-1 filing, which defines the terms of its sale and the company's financial condition, to know this.But it helps.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLyft offers three years of financial statements in its S-1, and they're a horror show. In 2018, for instance, the company lost $43.04 per share. It brought in $2.156 billion in revenue and lost over $911 million. By the end of the year, it was down to $517 million in cash. * 7 Mid-Cap Growth Stocks That Could Be the Next Amazon or Netflix Lyft's launch will give it a valuation of $20-25 billion but it needs this money to keep going. The Taxi Roll-UpLyft is like a joke from the 1970s, the psychological era of "I'm OK, You're OK." The joke is "I'm OK, you're a taxi." Lyft automates the process of catching and delivering a taxi ride. It makes everyone a taxi who wants to be one. It means my neighbor who spent his life driving a hack retired at just the right time. But how big is that business?The Lyft S-1 estimates it had 18.6 million "active riders" at the end of last year, each of whom brought in $36.04 in revenue. Bookings came to $8.1 billion in 2018. Lyft's share of those takings came to 26.8%, and that's been rising. That's still a tiny percentage of the total ride-hailing industry, which was $2.78 trillion in 2018. Lyft and its arch-rival Uber, which is also due to go public soon, are taking an increasing share of that pie. Taxi medallions are becoming worthless, and car rental fleets are being downsized.The problem is that this can't go on. Ride-sharing has been growing because it's unregulated and subsidized by investors. With U.S. unemployment below 4%, it's getting harder to find drivers. Prices must rise because both Lyft and its drivers need raises. The Autonomous CarThe sizzle on this overcooked steak is the autonomous car, an idea Lyft loves to hype. The idea is that it has the account control to make self-driving cars a reality, and that autonomous vehicles, unlike those with human drivers, can be profitable. Lyft has a Ford Fusion with electronics on top of it and what it calls a "Level 5" vision. This means it thinks it can get these cars safely down crowded city streets.Late last year, Lyft bought Blue Vision Labs, which had only recently come out of stealth mode. It wanted Blue Vision's "collaborative AR technology" that crowdsources street maps, and travel patterns, allowing it to move with "centimeter-level accuracy."This is "truly amazing tech," wrote Blue Vision CEO Luc Vincent, now Lyft's vice president of autonomous technology. For now, however, this is very expensive vaporware, even at Alphabet's (NASDAQ:GOOGL) Waymo unit. It exists more in code and on paper than in the marketplace. The Bottom LineIf the venture capitalist and private equity sharpies backing Lyft thought all this was going to work tomorrow and generate big profits, I guarantee they wouldn't be offering you a taste.Lyft's S-1 had to admit this truth: "We have a history of net losses and we may not be able to achieve or maintain profitability in the future," the document reads.It's true that Twitter (NASDAQ:TWTR), Twilio (NASDAQ:TWLO), Square (NASDAQ:SQ) and Roku (NASDAQ:ROKU) weren't profitable when they went public. But this was also true for Blue Apron (NASDAQ:APRN) and Snap (NASDAQ:SNAP).Had Lyft gone public in 2016 or 2017, when the idea of ride-sharing was new, I might have taken a different view. But it waited until it had tapped out its private equity partners and really needed the money. Now it's coming to you with its hand out. * The 2 Best Stocks to Buy Instead of Lyft You're much better handing any money you might have put into Lyft into my favorite charity. You'd be helping young people and get a good feeling from it, rather than bailing out some overstretched billionaires who'll just be looking for more money by Christmas.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write to him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing, he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Genomic Testing Stocks That Can Ease the Sting of Theranos * 4 Pot Stocks That Could Be Fizzling Out * 7 Mid-Cap Growth Stocks That Could Be the Next Amazon or Netflix Compare Brokers The post Buying Lyft Stock's IPO? Look Elsewhere appeared first on InvestorPlace.
Over the past five years, these companies scored the greatest one-day trading gain for Bay Area tech companies – setting a high bar for Lyft to beat on Friday when it is expected to launch its IPO.
SaaS stocks not only have a predictable subscription revenue stream, these stocks are high-growth companies due to their alignment with cloud computing.