131.99 -0.26 (-0.20%)
After hours: 5:58PM EDT
|Bid||131.99 x 800|
|Ask||132.00 x 1800|
|Day's Range||129.53 - 134.37|
|52 Week Range||41.12 - 136.00|
|Beta (3Y Monthly)||1.33|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||130.45|
[Editor's note: This story was previously published in February 2019. It has since been updated and republished.]Cloud stocks are back. During the late 2018 market selloff, cloud stocks were thrown out, along with every other growth stock in the market. But as financial markets have improved in early 2019 due to stabilizing economic fundamentals, cloud stocks have come roaring back.The big rebound in cloud stocks can be chalked up to improving fundamentals and sentiment. As it turns out, the global economy isn't spiraling downward at a rapid rate. Instead, it is simply slowing at a reasonable rate to a more steady 2-3% growth rate. Amid this slowdown, cloud services demand has remained robust, since cloud services are seen both as the future and a way to cut costs amid slowing growth.InvestorPlace - Stock Market News, Stock Advice & Trading TipsConsequently, the fundamentals and sentiment underlying cloud stocks have dramatically improved over the past month. As they have, cloud stocks have soared higher. * 7 Dividend Stocks That Could Double Over the Next Five Years This rally is far from over. Considering only 20% of enterprise workloads have shifted to the cloud, it's fair to say that the rally in cloud stocks is still in its early stages. With that in mind, let's take a look a seven cloud stocks to buy now. Adobe (ADBE)Perhaps the best-in-class cloud stock to buy now for healthy upside and limited risk is Adobe (NASDAQ:ADBE).The core growth narrative here is quite promising. Adobe is one part stable-growth business with a huge moat, and one part hyper-growth business with a rapidly expanding addressable market. Those two parts put together are worth far more than what the market is saying today.On the stable growth side, Adobe is a one-stop shop digital solution for creative professionals with relatively muted competition. This has always been the case. If you can't think of any true competitors to Adobe in the creative solutions space, you aren't alone. Just check out this list or this list of Adobe Photoshop alternatives. None of them are household names. Nor do any of them offer products even close in quality to Adobe's offerings. As such, this creative solutions business is a stable growth business with a huge moat and no competition, implying healthy revenue and profit growth for the foreseeable future.On the hyper growth side, Adobe is morphing into a cloud business with a unique value prop. Other cloud solutions focus on various factors. Adobe's cloud solutions focuses on experiences and visuals, and the company is leveraging its experience in visual-oriented solutions to create cloud solutions for companies looking to enhance their consumer's experience. As it does, Adobe's revenue and profits will move considerably higher.Overall, there's a lot to like about ADBE stock. This is a big growth company that will keep growing at a big rate for a lot longer. That level of robust growth will power ADBE stock significantly higher in a long term window. Twilio (TWLO)Another best-in-class cloud stock is cloud communications app maker Twilio (NYSE:TWLO)Over the past several quarters, Twilio has emerged as the unchallenged leader in the rapidly growing Communication Platforms-as-a-Service (CPaaS) market. The CPaaS market essentially consists of companies integrating real-time communication into their services. Think of Uber or Lyft using messages to communicate with riders when their rides are approaching.This market will be huge due to continuous shifts towards cloud-based communication, personalized customer experience and digital engagement. Quite simply, as consumers, we enjoy digital, real-time, and personalized communication about the services and products we are paying for. Twilio enables this communication. That positions this company for huge growth as the CPaaS market expands over the next several years. For what it's worth, research firm IDC expects this market to grow five fold over the next five years.Thanks to its huge customer and revenue growth and 95%-plus retention rate, Twilio has emerged as the clear leader in this space. As this space matures over the next several years, companies will increasingly turn towards Twilio to enable CPaaS solutions thanks to the company's leadership position (in new industries, you always tend to trust the leader). * 7 Dividend Stocks That Could Double Over the Next Five Years As such, over the next several years, Twilio will continue to grow at a rather robust rate. This big growth will ultimately power TWLO stock higher, especially against a favorable equity backdrop. ServiceNow (NOW)In the digitization and automation fields, the cloud stock to buy is ServiceNow (NYSE:NOW).ServiceNow is currently in the business of digitizing corporate operations. This includes automating corporate workflows and IT tasks. But, this is just the tip of the iceberg for ServiceNow. Automation is a big, big market. Automating IT tasks represents just a fraction of what the automation market will look like at scale.At scale, jobs across the entire corporate ecosystem will be replaced by more efficient digitized and automated solutions. ServiceNow will provide the lion's share of these solutions. As such, as the automation revolution plays out over the next several years, ServiceNow's revenues and profits will explode higher. As they do, NOW stock will explode higher, too, considering the valuation today remains reasonable.Overall, NOW stock is a great way to play the automation revolution. This revolution is still in the first inning, and the next eight innings promise to have broad and immense financial implications. For ServiceNow, those implications are hugely positive. As such, NOW stock should trend consistently higher over the next several years. Okta (OKTA)One of the more exciting cloud stocks to consider here is Okta (NASDAQ:OKTA).Okta is pioneering what the company calls the identity cloud. Essentially, this is a cloud solution centered on individual identity that allows millions of people across a corporate ecosystem to seamlessly, securely, and uniformly connect to the technological tools that the corporation is adopting. This may sound like a complex idea. The underlying technology is complex. But, the idea isn't. The idea is that companies everywhere are rapidly adopting new technologies, and that the implementation of these technologies is often difficult, chunky, and risky to identities and data. Okta solves this problem, and allows companies to adopt new technologies seamlessly and within the same secure cloud solution.This is a big idea. Big ideas have big markets. Indeed, the addressable market for Okta's identity cloud is the whole IT space. Okta recorded revenues of $115 million last quarter from growth of nearly 60%. This is nothing new. Over the past several quarters, the average revenue growth rate has hovered around 60%. * 7 Dividend Stocks That Could Double Over the Next Five Years Thus, this is a small company that is consistently and rapidly growing in a huge market. Gross margins are high, and marching higher, leaving room for big profits at scale. Overall, this is a big growth company with a ton of potential. The valuation is big, but the amount of growth firepower underneath this business implies a tremendous opportunity to grow into the valuation, and then some, making OKTA stock an attractive long term investment here. Salesforce (CRM)The king of all cloud stocks is Salesforce (NYSE:CRM), and there's good reason for that.Salesforce is at the heart of the cloud and data revolutions. The company leverages data and analytics to deliver robust cloud solutions to enterprises that want data-driven insights. Demand for this type of service will grow by leaps and bounds over the next several years as data-driven strategies and cloud solutions become the enterprise norm. Salesforce has developed a long-standing reputation for being the best in class for delivering these services.That won't change any time soon. As such, Salesforce's revenues and profits will soar higher over the next several years as the cloud and data revolutions gain mainstream traction.This will naturally push CRM stock higher. Valuation is somewhat of a concern at nearly 60x forward earnings. But, the company has enough growth firepower through cloud and data tailwinds to grow into its valuation. Plus, valuation has been a long-running concern for this stock, and the stock has done nothing but defy those concerns and head higher over the past several years.The same will be true over the next several years, too. Cloud and data tailwinds will propel CRM stock higher, and this stock will ultimately grow into its valuation. Indeed, numbers indicate the stock could double in the long run. Amazon (AMZN)Amazon (NASDAQ:AMZN) is better known for its giant e-commerce business. But, the true profit growth driver behind Amazon is the company's cloud business -- Amazon Web Services.AWS is the world's largest cloud infrastructure services business, and it's not even close. Amazon Web Services is bigger than its four closest competitors … combined. And the company has consistently controlled more than 30% of the cloud services market.This dominance speaks volumes about just how good AWS is. Indeed, AWS is so good that even Amazon's commerce competitors are giving money to the company through AWS. Notably, Amazon's e-commerce competitor Zulily migrated its infrastructure to AWS recently. Also, AWS is so good that Amazon it is the clear front-runner to win a $10 billion Joint Enterprise Defense Infrastructure (JEDI) commercial cloud contract with the U.S. government. If Amazon were to win that contract, that would be the second huge government contract it has won this decade (AWS won a $600 million CIA contract in 2013). * 7 Dividend Stocks That Could Double Over the Next Five Years Overall, AWS is the clear leader in the cloud infrastructure services. As this market grows over the next several years, AWS will grow, too, and that will provide a big boost to Amazon's profits. A big boost to Amazon's profits will give AMZN stock firepower to head higher. Alphabet (GOOGL)Much like Amazon, Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG) is better known for its non-cloud businesses.But, a significantly underappreciated and underrated aspect of Alphabet is Google Cloud. Google Cloud is a big growth, big margin business for Alphabet. To be sure, the business has lost some steam over the past several quarters as Microsoft (NASDAQ:MSFT) has gained cloud market share at a more robust pace than Alphabet recently. But, there have been some C-suite changes at Google Cloud which could give the business new direction and new firepower to regain some lost momentum.Regardless, Google Cloud will remain a 20%-plus growth business for a lot longer. Overall, Google Cloud is the key to unlocking the next leg of value in GOOGL stock. Fortunately, this business is progressing as expected, and will continue to do so over the next several years. As it does, GOOG stock will move higher.As of this writing, Luke Lango was long ADBE, TWLO, CRM, AMZN and GOOG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks That Could Double Over the Next Five Years * 6 S&P 500 Stocks Ready to Break Out * 5 Mining ETFs to Dig Into Compare Brokers The post 7 Cloud Stocks to Buy Now appeared first on InvestorPlace.
Twilio's (TWLO) first-quarter results are likely to benefit from the recent acquisition of SendGrid and sustained growth in its core products.
Twilio Inc. (TWLO) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
This group of overlooked corporate software stocks has risen a median of 126%, compared to a 15% gain for consumer-facing tech IPOs.
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.