Twilio Stock Slips As Earnings Top Estimates Amid Buying Spree By Investors Business Daily
August 09 2021 Invest2Success issued a sell-short trade-plan to its subscribers as follows.
Sell Short: Twilio Inc – Ticker: TWLO – Sector(s): Communication Services Industry: Internet Content & Information
Sell Entry: 373.52 to 367.73 Down To 361.27 Near-Term Breakdown
Stop-Loss: 399.49 to 384.49
Take Profit Price Targets: 346.36 to 344.47, 321.09 to 319.67, 303.61 to 302.19
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Twilio stock sank in early action on Friday after its June-quarter earnings fell from a year earlier but topped views amid an acquisition spree. Revenue growth handily beat analyst estimates in the Twilio earnings report.
Twilio reported second-quarter earnings late Thursday. Amid recent acquisitions, Twilio‘s (TWLO) organic growth has been an issue for investors.
“The major Q2 highlight was organic growth accelerating to 52% (vs. 49% in Q1), which is especially impressive considering Twilio’s scale,” RBC Capital analyst Rishi Jaluria said in a note to clients. “Of course, there are going to be questions on what organic even means going forward, given all the moving parts in the model.”
Twilio said it lost 11 cents per share in the quarter ended June 30 vs. a 9-cent profit in the year-earlier period. Revenue jumped 67% to $669 million, said the communications software maker.
Analysts had estimated Twilio would report a 13-cent loss on revenue of $598.4 million.
Twilio Earnings: Gross Margins Dip
Twilio stock dropped 4.7%, closing at 373.90 on the stock market today.
“The nitpick on Q2 was gross margin compressing and missing consensus,” Jefferies analyst Samad Samana said in his note to clients. “Q3 guidance was better than consensus, partially aided by M&A and (telecom) fees.”
Heading into the Twilio earnings report, shares had advanced 16% in 2021. Twilio stock hit an all-time high of 457.30 on Feb. 18.
Shares then swooned along with most software growth stocks. Twilio stock rebounded after its March-quarter earnings report.
For the September quarter, San Francisco-based Twilio said it expects a loss in a range of 14 cents to 17 cents per share on revenue of $675 million. Analysts had projected a 7-cent loss on revenue of $636.4 million.
Twilio Stock: Acquisition Spree Crimps Profits
Twilio’s tools enable app developers to embed voice, text messaging and video into their products. In addition, Twilio’s software makes it easier for cloud-based applications to communicate.
Twilio acquired Segment in November for $3.2 billion in stock. It bought SendGrid in 2018 for $2 billion.
In March, Twilio agreed to buy India’s ValueFirst. In May, Twilio bought ZipWhip.
