Twilio Stock News and Forecast: Earnings beat pushes TWLO to nearly reclaim entire YTD loss
- Twilio walloped Q4 forecasts.
- TWLO shares are up about 24% as well.
- Twilio stock needs to regain $263.44 to wipe out YTD loss.
Twilio (TWLO) stock nearly wiped out its entire year to date loss on Wednesday night at one point in the afterhours market following the cloud communications company's impressive Q4 earnings release. Before the release, TWLO shares were down more than 23% for the year, closing Wednesday's regular session at $202.19. The earnings beat, however, automatically had the stock surging up 29.6% at one point to just under $262, a YTD loss of about 0.6%. In Thursday's premarket, TWLO is trading up a more modest 18.8% at $240.
In 2 minutes, during after hours trading, $TWLO retraced its entire -23% YTD performance, before most humans even had time to read the press release.
— Marcelo P. Lima (@MarceloPLima) February 9, 2022
Markets are insane.
Twilio Stock News: solid guidance drives optimism
Investors, and maybe algos, perked up at the news of another revenue beat, with Twilio taking in $842.7 million. This amounted to $73 million above projections and 9.5% above the average forecast. The market may have been more impressed by such a large software company continuing to grow revenue at such an intrepid pace. Revenue was up 54% YoY for the quarter and even more for the year.
Adjusted earnings per share (EPS) still came in at a loss, $-0.20, but it beat estimates by two cents.
“Our fourth quarter capped off an amazing year of results as we delivered more than $2.8 billion in revenue for the year, growing 61% year-over-year,” said Jeff Lawson, Twilio’s cofounder and CEO.
Guidance for the first quarter impressed Wall Street. Management guided for revenue of $860 million compared with consensus of $803 million. The midpoint for adjusted EPS also drew applause at $0.02 compared with prior estimates for $-0.05.
TWLO key statistics
| Market Cap | $35 billion |
| Price/Earnings | N/A |
| Price/Sales | 13 |
| Price/Book | 3 |
| Enterprise Value | $31 billion |
| Operating Margin | -30% |
| Profit Margin |
-33% |
| 52-week high | $457.30 |
| 52-week low | $172.61 |
| Short Interest | 2% |
| Average Wall Street Rating and Price Target | Buy, $362.44 |
Twilio Stock Forecast: $269 is the obvious target
Expect TWLO stock to continue tearing it up. Like Enphase Energy (ENPH), this stock is telling the market that it does not care one bit about rising interest rates or increasing inflation. With numbers this good, it is likely this bull run will continue.
Besides the $263.44 year end price for 2021, $269 appears to be the next prominent target. This level gets its authority from acting as support on November 23 of last year and then again as resistance on December 30. It will likely act as resistance again if given a change, but surmounting this obstacle will allow TWLO to resurrect its growth stock status and continue a charge toward the next target at $278. Support is at $212.
TWLO 1-day chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
