|Bid||0.00 x 900|
|Ask||0.00 x 900|
|Day's Range||81.83 - 85.00|
|52 Week Range||44.42 - 86.13|
|Beta (3Y Monthly)||1.51|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 29, 2019 - May 3, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||86.60|
Before you read the following, let me make something clear -- don't misread the message. Just because Twilio (NYSE:TWLO) is ridiculously, stupidly overvalued doesn't mean Twilio stock can't continue to rally. It is what it is.Source: Web Summit Via Flickr * 7 Small-Cap Stocks That Make the Grade On the other hand, there comes a point in time when every publicly traded entity has to justify its stock's price. Twilio can't -- and won't be able to anytime soon anywhere near its current value. The only question is, when and where will most traders stop and ask "what's the end-game?"Warning: You may not like the answer. The good news is, the answer may not be relevant for a long, long time.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Number-CrunchingI get it. Believe me, I get it. Twilio is a story stock, and story stocks don't trade like regular stocks do. They trade based on potential. Amazon.com (NASDAQ:AMZN) is the quintessential example of a story stock, paying off in a big way for investors who could see years down the road.Let's be honest, though. Amazon is the exception to the norm rather than the norm. For every Amazon, there are four or five companies like Pets.com, Webvan, Flooz, and DrKoop.com. They were all just as touted as Amazon.com at the time, but ended up going nowhere.Still, let's just assume Twilio ends up surviving and tweaking itself long enough to make it. Then what?Just to put things in perspective, Twilio is a $15.5 billion company that's generated $650 million worth of revenue over the course of the past four reported quarters. To its credit, last year's top line was 63% better than 2017's, and the pros are calling for similar sales growth this year.Not bad. Not bad at all.But even if Twilio ends up pulling in the $1.08 billion in sales analysts are modeling for the year now underway, Twilio stock is still trading at about 15 times sales.That compares unfavorably to its tech peers. Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG) presently trades at about 6.1 times its trailing revenue. The aforementioned Amazon is valued at a price/sales ratio of 3.5.Given those comparisons, TWLO stock is arguably valued three times as much as it should be. Or, to approach the matter from a forward-looking perspective, Twilio would need to triple its revenue to be priced on par with its cloud-minded peers.And earnings? It's not even entirely fair to use profits as a yardstick to measure Twilio stock. It's a startup, spending heavily to develop a machine that can attract and keep customers. But it's at least a starting point from which to make a bigger-picture call.Last year, Twilio posted a per-share profit of 11 cents. Analysts are only modeling earnings of 10 cents per share for Twilio stock this year, but given a handful of topped estimates in its recent history, that might be too pessimistic. Let's say 20 cents per share is a more plausible figure. That translates into a forward-looking P/E ratio of 634.That's not even in the same realm as more developed rivals. Alphabet shares are priced at 21.9 times their projected income. Even the perpetually frothy AMZN stock is trading at only 42 times this year's estimated profits.Twilio needs to beef up its earnings by roughly 20 times this year's outlook for the stock's current price to make sense. Bottom Line for Twilio StockAgain, I get it. Anything's possible. It's happened before. The fundamentals -- as I conceded -- don't even really matter for story stocks. Rhetoric alone could continue to fuel the incredible rally Twilio stock has dished out since late 2017.Let's be realistic, though. Now that Twilio and its direct rivals like RingCentral (NYSE:RNG) and Zendesk (NYSE:ZEN) have proven there's a market in delegating customer service management and routing to the cloud, bigger and deeper-pocketed players are willing and able to compete. That makes the path to a tripling of revenue a tough one to traverse, while the path to a 2000% increase in profits could be even tougher to navigate. * 15 Stocks That May Be Hurt by This Year's Big IPOs Own TWLO stock if you must. But, let's not kid ourselves about what such position really is. Even though the financial media and analysts are treating it like it's a normal stock, it isn't. It's just a trade. Sooner or later it will have to justify its price -- and it may struggle to do so.That doesn't mean it can't be a fun train to ride between now and then, though.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy Today * 7 ETFs to Buy to Ride the Longevity Economy * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Compare Brokers The post Hereas How Much Twilio Would Have to Grow to Make Sense appeared first on InvestorPlace.
The so-called “Twitter tax break” was born in 2011 and will finally come to a close in May. What's its legacy?
Zendesk Inc NYSE:ZENView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is extremely low for ZEN with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting ZEN. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding ZEN are favorable, with net inflows of $2.36 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, but is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Zendesk, Inc. (NYSE:ZEN), which is in the software business, and is based in United States, saw a significant share price rise of over 20% in the past couple of monthsRead More...
In the"No-Huddle Offense" segment of Mad Money Monday night, Jim Cramer reminded viewers that the "fear of missing out," or FOMO, should never be an investing strategy because it's always hazardous to your portfolio. said Cramer, which has seen its shares rally more than 780% since its IPO way back in 2014. Cramer said while Zendesk is a great company with a great story, investors should not chase the stock at these levels.
NEW YORK, Feb. 20, 2019 -- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors,.
Zendesk, Inc. (ZEN) today released The Zendesk Customer Experience Trends Report 2019 showing that companies of all sizes across industries and geographies lack the capabilities needed to keep up with ever increasing customer expectations. While good customer service outranks convenience and reputation when people are considering which companies to do business with, according to the report, there is a global dip in overall customer satisfaction. Over the past five years, customer satisfaction is down 2.2 percent, from 94.6 percent in 2013 to 92.5 percent in 2018, decreasing nearly a full percentage point in the past year.
The company emphasized that the hirings were about expanding the executivesuite and bringing in top people to help the company grow and move into largerenterprise organizations
Company appoints former Microsoft executive Elisabeth Zornes as first chief customer officer, former Adobe executive Colleen Berube as chief information officer, and former Salesfo
Shares of DocuSign Inc. are up 1.2% in afternoon trading Wednesday after Deutsche Bank analyst Karl Keirstead upgraded the stock to buy from hold and raised his price target to $65 from $50. He wrote of "solid field checks" based on his conversations with large customers. "The overall software space appears to be powering through the recent macro/IT concerns, with several names (ServiceNow , Zendesk , Atlassian , RingCentral [s:rng] , Twilio ) posting accelerating growth, increasing our comfort with DocuSign's fiscal 2020 outlook," he wrote. Keirstead expects that customers wouldn't cut back on their DocuSign spending "even in a recession" due to cost savings. The stock has gained 25% over the past three months, as the S&P 500 has risen 1%.
The sweet spot in the software market is cloud applications. Zendesk (NYSE:ZEN) is in this sweet spot. and the company and the owners of ZEN stock have benefited from its positioning.Founded in Copenhagen, Denmark in 2007 around help-desk applications, ZEN subsequently moved to the bright lights of San Francisco and has developed a broader customer-relationship-management tool.The company's growth is accelerating. It generated revenue of $598 million in 2018, up from $430 million in 2017, and it provided top-line guidance of$800 million for 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Reasons You Want Boeing Stock in Your Portfolio It's investing to support its growth, so it's not profitable yet, but its operating cash flow is positive, and ZEN stock recently set a new record. As of this morning, ZEN stock was changing hands at $74.80 per share. A New Market And New Competitors for ZENZendesk Support now has 2,000 employees and 125,000 customers including AirBnB, Stanley Black & Decker (NYSE:SWK) and Rovio Entertainment (OTCMKTS:ROVVF). Telephone operators use the product to resolve customers' problems and provide customer support. In the wake of its growth, multiple companies have launched competing tools.Meanwhile, after launching a full customer relationship management tool called Sunshine, ZEN has started butting heads with a number of its San Francisco and Silicon Valley neighbors like Salesforce.Com (NASDAQ:CRM). Amazon SunshineSunshine is a database application that's built entirely on Amazon.com's (NASDAQ:AMZN) cloud service, AWS. Sunshine offers support for sales and data analytics and can connect with other data sources. Additionally, customers can add their own applications to Sunshine By tying itself to AWS, Zendesk is able to access other AWS services and AWS' customers, making Zendesk powerful enough to take on companies like Salesforce, Oracle (NASDAQ:ORCL) and SAP (NYSE:SAP).ZEN is using AWS as an operating system, in the same way that companies a generation ago built applications on Microsoft (NASDAQ:MSFT) Windows. Using a single, large operating system also improves the customer experience, since sales and support are maintained in the same system.Zendesk recently surveyed 2,500 of its customers. and found that many of them now sell products and provide support over not just telephones and their websites but also through live chats, social media, and texting. Zen Sunshine supports all of these activities and offers a single view of the complete record of each customer.With the launch of Sunshine, ZEN has acquired a host of competitors like Freshdesk and Liveagent on the help-desk side, but also Zoho and Salesforce on the CRM side, all of which also boast about fast growth and cloud integration. The Bottom Line on ZEN StockZendesk's success has made ZEN stock expensive. ZEN stock has a market cap of $8 billion, while analysts on average expect the company's 2019 revenue to come in at $592 million. On the other hand, by the end of December, it had already booked $407 million in future revenue, and the size of its average contract is growing by 60% per year. Zendesk's commitment to AWS, the leading cloud provider, and its construction of the Sunshine platform on top of it offers ZEN the opportunity to scale quickly from help-desk automation to full customer relationship management.Zendesk is still led by its founders, but it has sought to tap other talents with a board that includes executives from Workday (NASDAQ:WDAY) and Facebook (NASDAQ:FB), as well as Matrix Partners, the venture capital firm that funds ZEN.ZEN's Danish management team is talented, but it will have to move quickly indeed to keep the high valuation of ZEN stock intact.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 him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monster Growth Stocks to Buy for 2019 and Beyond * 7 Cloud Stocks To Buy Now * 5 Undervalued Stocks to Invest In Compare Brokers The post Zendesk Stock Could Benefit From a Powerful, New CRM Tool appeared first on InvestorPlace.
Jim Cramer says "I wish I'd spotted Zendesk sooner ... [but] if we get a major pullback in this stock, you have my blessing to pounce."
Zendesk CEO Mikkel Svane sits down with "Squawk Alley" to discuss the company's earnings and growth, as well as the competition its facing.