Twilio shares rose 3.1% on Sept. 24 to $299.66 as four firms raised price targets. Its AI-related investment case is that assistants could increase messaging and voice traffic on its network; the stock has roughly tripled from its $98.44 low over the past year.
Second-quarter revenue rose 22% year over year to $1.50 billion, beating analysts’ expectations, and earnings also topped estimates. After carrier pass-through fees were excluded, underlying revenue growth was closer to 17%.
Management guided third-quarter organic growth down to 11%–12%. The article also notes that trailing 12-month profit was boosted by a large one-off tax item that will not recur, and the average analyst price target was below Twilio’s share price despite recent increases. Twilio is due to report again Oct. 29; the article identifies organic revenue growth as a key indicator of whether AI traffic is reaching its network.
