|Bid||79.40 x 800|
|Ask||82.43 x 900|
|Day's Range||78.43 - 81.21|
|52 Week Range||45.60 - 86.85|
|Beta (3Y Monthly)||1.49|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||86.90|
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.
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. For example, the Zendesk, Inc. (NYSE:ZEN) share price has...
Zendesk Inc NYSE:ZENView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low 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 $2.68 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording 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, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.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. (ZEN) today announced that it will release financial results for the first fiscal quarter ended March 31, 2019, following the close of the U.S. markets on Tuesday, April 30, 2019. In conjunction with its earnings press release, the company will post a detailed shareholder letter to its Investor Relations website https://investor.zendesk.com. Zendesk will host a conference call to answer questions at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Tuesday, April 30, 2019.
ByFounders, a relatively new early-stage venture capital firm targeting theNordic and Baltic regions of Europe, is officially launching its first fundtoday
Zendesk, Inc. (ZEN), a leading customer experience and engagement software company, today announced plans to continue to expand its footprint across Australia and New Zealand (ANZ) by appointing Amy Foo as Managing Director.
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: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
Jim Cramer takes a closer look at technology stocks ExplosiveOptions founder Bob Lang's interpretation of the charts.
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."