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Twilio Stock Jumps. Software Firm 'Gave Investors What They Needed To Hear' Amid Big Rally.

stock :: 2025-01-24 :: source - ibd

By RYAN DEFFENBAUGH

A banner for communications software provider Twilio Inc., hangs on the facade of the New York Stock Exchange (NYSE) to celebrate the company's IPO in New York City, U.S. - Reuters

Twilio (TWLO) stock jumped Friday as investors digested positive long-term profit commentary from the communications software maker's investor day, along with preliminary fourth quarter results.

In a filing late Thursday, Twilio said it expects to report Q4 sales growth of 11% year-over-year when it publishes full results next month. Analysts polled by FactSet are expecting Twilio to post sales of $1.16 billion, up 10%. The company also said it expects "non-GAAP income from operations for the fourth quarter of 2024 and fiscal year 2024 above the top-end of the guidance ranges" provided in late October.

Twilio hosted an investor event earlier that day. The company told investors that it expects its adjusted operating margin to grow to between 21% and 22% in 2027.

UBS analyst Taylor McGinnis reiterated a buy rating for Twilio, with a price target of 145, up from 140.

"Twilio gave investors what they needed to hear to remain constructive, with the guide, new $2 billion share repurchase authorization, financial disclosures and upbeat qualitative commentary all meeting or exceeding expectations and supporting the bull case of medium-term double-digit growth with earnings-per-share and free-cash-flow growth in the high-teens and 20s," McGinnis wrote.

On the stock market today, Twilio stock rallied more than 20% to 138.52 in morning trades.

Twilio Stock: Up 60% Since October Entering Friday

Twilio's tools enable app developers to embed voice, text messaging and video into their products. Twilio's software also makes it easier for cloud-based applications to communicate.

Friday's leap will allow Twilio to build on an already strong recent rally. Twilio stock is up 60% since the company's third quarter earnings report.

Twilio stock has an IBD Composite Rating of 98 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.

Source: IBD

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