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Is This an Overreaction to Twilio's Earnings?

By Jose Najarro – Oct 29, 2021 at 10:00AM

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Twilio's stock price dropped over 17% after its earnings report.

Today's video focuses on Twilio's (TWLO 5.07%) recent earnings, reported after the market closed on Oct. 27. Twilio's stock price was down over 17% on Oct. 28. Is this creating a buying opportunity for long-term investors? Here are some highlights from the video. 

  1. Twilio reported strong growth for its third-quarter earnings. Revenue was $740 million, up 65% year over year (YOY) and up 15% quarter over quarter. The outlook for its fourth quarter represents roughly 40% YOY growth.
  2. Investors might be worried about the COO stepping down as well as a slowdown  in organic revenue growth seen in the third quarter and predicted for the upcoming fourth quarter. It is important to note that a year ago, Twilio saw a bump in revenue due to political traffic, which is affecting Twilio's growth rate.
  3. Numerous analysts cut their price target for Twilio, creating a bearish sentiment toward the company and its earnings results. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closing prices of Oct. 28, 2021. The video was published on Oct. 28, 2021.

Jose Najarro owns shares of Twilio. The Motley Fool owns shares of and recommends Twilio. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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