TWLO Stock Forecast: More Triple-Digit Returns for This Tech Disruptor

Twilio Stock Will Ride Out of Choppy Waters

Twilio Inc (NYSE:TWLO) released a statement Monday that it will buy the e-mail marketing company, SendGrid Inc (NYSE:SEND) for $2.0 billion, in an all-stock transaction. (Source: “Twilio to acquire SendGrid, the Leading Email API Platform,” Twilio Inc, October 15, 2018.)

The news hit Twilio stock hard, and it has been trying to recover ever since. So what’s the TWLO stock forecast?

Twilio builds cloud-based communication toolkits called Application Programming Interfaces (APIs) for messaging, voice, and video. With the help of these APIs, developers or programmers can easily enhance the communication functions of their apps or web sites to improve customer engagement.

Twilio gives developers the power to make a phone call with just a few lines of code. The company has evolved its platform to cover nearly every channel that companies use to communicate with their customers, including voice, video, SMS, smart assistants like “Alexa,” messaging apps like “WhatsApp,” and more.

The only missing feature from Twilio’s platform has been e-mail. The SendGrid acquisition is aimed at bridging this gap. SendGrid has built the industry’s best cloud-based e-mail delivery platform and should help Twilio accelerate its mission to fuel the future of communications.

The deal brings together two leading communication platforms for developers. Together, the companies will serve millions of customers. Despite its recent fall, TWLO stock has been one of the best-performing cloud stocks and is set to continue its upward march following the initial setback.

Although the competition is strong, Twilio has proven itself to be resilient. It has deals with phone providers all over the world and has lots of goodwill among developers.

The number of developers that use its service has been rising. Twilio boasts of Nordstrom, Uber, and OpenTable as its clients beside many other big names.

The cloud communications company announced its second-quarter results in August. Total revenue went up by 54% year-over-year to reach $147.8 million as the core voice and messaging products grew strongly.

The company is still making losses although the active customer accounts as of June 31, 2018 were around 57,350 compared to 43,431 in the second quarter of the previous year. (Source: “Twilio Announces Second Quarter 2018 Results,” Twilio Inc, August 6, 2018.)

The company also launched the Twilio API for WhatsApp. This will allow developers to easily add one of the most important global messaging channels to their applications.

Twilio was one of the hottest tech initial public offerings (IPOs) of 2016, and TWLO stock has gone up by about 150% since then. Over the past year, the stock has gained more than 100%. The Twilio stock forecast remains upbeat.

Chart courtesy of StockCharts.com

Twilio has been disrupting the communications space for a long time. The company aims at transforming communications from its legacy in hardware to its future in software.

This means that software developers who have ideas on making communication better can just use Twilio APIs to do so. The company is working toward improving the world’s communications with the power of software. This is a market with huge potential; every business and company can gain from better communications. This could result in more triple-digit returns for TWLO stock.

Analyst Take

Twilio has emerged as one of the strongest cloud communications platforms for companies to communicate with customers. Its service lets developers easily attach various features to their apps, such as texting and phone calls.

Its acquisition SendGrid builds API tools that help businesses deliver marketing e-mails. The company is a good fit in Twilio’s portfolio. As the digital economy continues to grow, its software will disrupt a number of industries, including communications.

Being at the forefront of this change, TWLO stock is expected to post strong gains. Investors should not ignore this opportunity, and may want to consider Twilio stock on any sign of weakness.