#3 - Twilio (NYSE:TWLO)
Twilio (NYSE: TWLO) - Twilio’s stock is up for the year so this goes against the grain of harvesting losses. However, if you’re looking to pocket some gains for the year, TWLO could be a great choice. Twilio powers the communications systems for a number of well-known names such as Uber, Netflix, Airbnb, and Nordstrom. And the stock is up over 300% this year – that’s a gain of over three times the best-performing stock in the S&P 500. But it’s fair to ask if the stock is overvalued considering how much uncertainty exists both in the economy and the market. A forward price/earnings (P/E) ratio of close to 600 and the fact that the stock is currently trading at 10 times revenue should be reason enough for investors to proceed with caution. There is also a concern that the technology does not necessarily provide the barrier to competition as it may seem. In 2017, the stock tumbled 26% when CEO Jeff Lawson reported on an earnings call that Uber was going to be reducing its reliance on Twilio’s technology. And in November, shares of Twilio dropped 13.76%. Cloud computing is the future, and Twilio certainly looks like it will be a force for years to come. However, in investing pigs get fat and hogs get slaughtered, now might be the time to take some profits and see where Twilio goes in the short term.
About Twilio
Twilio Inc, together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication.
Read More - Current Price
- $107.93
- Consensus Rating
- Hold
- Ratings Breakdown
- 10 Buy Ratings, 11 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $90.35 (16.3% Downside)
