Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Core Viewpoint - Twilio (TWLO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on changes in earnings estimates, leading to significant buying or selling actions that affect stock prices [4]. Twilio's Earnings Outlook - For the fiscal year ending December 2024, Twilio is expected to earn $3.68 per share, reflecting a 50.2% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Twilio has risen by 32.7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Twilio's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [10].

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Twilio (TWLO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Twilio currently has an average bro ...

Company Performance - Twilio's shares have increased by 28% over the past month, reaching a new 52-week high of $142.31 [1] - The stock has gained 28.6% year-to-date, compared to 30.3% for the Zacks Computer and Technology sector and 44.6% for the Zacks Internet - Software industry [1] Earnings and Revenue Expectations - Twilio has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters [2] - In the latest earnings report on October 30, 2024, Twilio reported EPS of $1.02, exceeding the consensus estimate of $0.87 [2] - For the current fiscal year, Twilio is expected to post earnings of $4.24 per share on revenues of $4.43 billion, with a year-over-year change of 15.27% [3] - For the next fiscal year, earnings are projected to be $4.74 per share on revenues of $4.76 billion, representing a year-over-year change of 7.51% [3] Valuation Metrics - Twilio currently trades at 32.8X current fiscal year EPS estimates, which is above the peer industry average of 31.2X [7] - On a trailing cash flow basis, Twilio trades at 170X compared to the peer group's average of 26.2X [7] - The stock has a PEG ratio of 1.12, indicating it is not in the top echelon from a value perspective [7] Zacks Rank and Style Scores - Twilio has a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, which is favorable for investors [8] - The company has a Value Score of F, while its Growth and Momentum Scores are both A, resulting in a VGM Score of B [6] Industry Comparison - The Internet - Software industry is in the top 18% of all industries, providing favorable conditions for both Twilio and its peers [11] - Fortinet, a peer company, has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, beating consensus estimates by 23.53% [9][10]

Shares of Twilio (NYSE: TWLO ) surged more than 20% on Friday after the Cloud communications software company submitted a strong outlook for FY 2025 at its investor day, due to consistent success with the adoption of AI products. The software enterpriseI look for high-risk, high-reward situations, mainly in the technology markets. I am an early buyer of Bitcoin and my portfolio mainly focused on companies with asymmetric long-term upside. My top holdings include: Bitcoin, Tesla, Google, Amazon and Nvidia.An ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Twilio (TWLO) , which belongs to the Zacks Internet - Software industry, could be a great candidate to consider.This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 19.89%.For the last reported quarter, Twilio came o ...

Core Viewpoint - Goldman Sachs analyst upgraded Twilio Inc from Neutral to Buy, raising the price target from $77 to $185 ahead of its fourth-quarter earnings results, indicating a turning point in both narrative and financial performance for the company [1] Group 1: Factors Driving Optimism - The analyst's optimism is based on improved go-to-market strategies, clear product innovation, and strong financial discipline [2] - Anticipated positive revisions to both revenue and earnings, with conservative CY25 guidance of 7-8% growth, and expected acceleration to over 10% in the second half of fiscal 2024 [2] Group 2: Revenue Growth Potential - The company needs to exceed its initial CY25 revenue growth forecast of 7-8% to unlock significant upside, as the stock has surged 89% over the last 12 months [3] - Analyst Day highlighted faster product development and enhanced go-to-market strategies, reinforcing the evolving outlook on Twilio [3] Group 3: Market Position and Future Outlook - Improvements to Twilio's Communications portfolio are expected to solidify its leadership in the core CPaaS market, while new CDP-powered Communications products expand its total addressable market [4] - The ongoing turnaround is projected to yield solid upside potential for revenue and free cash flow growth in CY25, making the stock attractive at a 21x EV/FCF multiple for CY26 [4] Group 4: Current Stock Performance - TWLO shares are trading higher by 2.6% at $139.77 [5]

Twilio (TWLO) shares rallied 20.1% in the last trading session to close at $136.23. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.7% gain over the past four weeks.The upswing came after the company projected an improvement in its fourth-quarter 2024 performance from its earlier expectations. In its preliminary results for the fourth quarter, Twilio stated that it expects to report an 11% year-over-year in ...

Key TakeawaysTwilio shares skyrocketed Friday on the cloud communications software maker's strong outlook amid growing demand for its AI tools.At an investor event Thursday, Twilio said it is looking to deliver double-digit growth, with fourth-quarter revenue up 11% from a year ago, above analysts' estimates.The cloud communications software company also said it is targeting GAAP operating profitability in fiscal 2025 and beyond.Twilio said more than 9,000 firms in the artificial intelligence space used its ...

Stock Performance and Investor Day Highlights - Shares of Twilio rallied 22 4% on Friday following the 2025 Investor Day presentation [1] - The company outlined new product innovations and medium-term financial targets, which were well-received by analysts and investors [1] Financial Strategy and Profitability Focus - Twilio is pivoting towards profitability after experiencing slowed revenue growth [3] - Management forecasts double-digit revenue growth through 2027, with adjusted operating margins expanding from 16% in 2024 to 21%-22% by 2027 [3] - Stock-based compensation (SBC) dilution is expected to be below 3% by 2027 [3] - The company plans to cut growth spending if revenue growth slows to maintain margin expansion [4] - Cumulative free cash flow is projected to be $3 billion from 2025 to 2027, compared to $650 million to $675 million in 2024 [4] - At least 50% of the free cash flow will be returned to shareholders through share repurchases, with a new $2 billion repurchase program authorized [4] AI and Market Position - 90% of Fortune 50 AI start-ups use Twilio for their communications platform, generating $260 million in revenue to date [5] - Twilio enables access to ChatGPT through text and voice, with OpenAI being a notable user [5] Valuation and Future Outlook - Twilio's market cap has increased to $21 2 billion, with a valuation considered reasonable relative to the projected $1 billion-plus free cash flow in 2027 [6] - Management aims to reduce equity grants to less than $500 million in 2025, down from $1 9 billion in 2022 [6] - The company's shift towards focusing on profits and free cash flow is seen as a positive development [7]