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Twilio (TWLO) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Twilio (TWLO - Free Report) closed the most recent trading day at $129.85, moving -1.26% from the previous trading session. This move lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Prior to today's trading, shares of the company had gained 5.75% outpaced the Computer and Technology sector's gain of 4.85% and the S&P 500's gain of 3.64%.

The investment community will be paying close attention to the earnings performance of Twilio in its upcoming release. The company is slated to reveal its earnings on August 7, 2025. The company is expected to report EPS of $1.02, up 17.24% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.19 billion, reflecting a 9.48% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.49 per share and revenue of $4.82 billion, which would represent changes of +22.34% and +8.1%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Twilio. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Twilio is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Twilio is currently trading at a Forward P/E ratio of 29.27. This represents no noticeable deviation compared to its industry average Forward P/E of 29.27.

Meanwhile, TWLO's PEG ratio is currently 1.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.21 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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