Stocks were flat to start the day, on this, the first trading session of the week. Many investors are cautiously watching for factors that would cause the Fed to back off from its current policy. May’s CPI number, scheduled to be released on Thursday could be a contributing factor. A rapid rise in prices would indicate a robust economic recovery and could trigger a pullback from the Fed. The Fed has signaled it doesn’t intend to raise rates before 2023, but could begin to discuss tapering asset purchase soon.
The recent growth sector meltdown has created some golden buying opportunities, like the one featured in today’s trade alert. Today we’ll focus on a still small company, that a lot of people don’t know about yet, but which is sitting on breakthrough technology in an emerging investment megatrend that could redefine how consumers go about their lives.
Most of us engage with Twilio (TWLO) technology on a regular basis without realizing it. If you’ve used a third party app to change your password, order dinner or make a reservation, you were likely dealing seamlessly with Twilio. As the leader of in-app communication solutions, Twilio plays a pivotal role in some of the apps we use the most.
Although the company’s numbers exceeded analyst expectations when it reported earnings last month, but weak second quarter guidance sent some investors running. Consequently, the stock lost more than 10% following the May 5th earnings call which left the share price more than 30% lower than February highs.
It should be hard for long-term-minded investors to see this as anything less than an opportunistic bargain, as quarter-to-quarter fluctuations aren’t usually a huge concern for those with their sights far on the distant horizon. Especially when considering Twilio, who routinely provides conservative guidance and surpasses its own forecasts, as well analyst estimates. As is evident in their Q1 earnings beat — revenue rose 62% for the period, far more than the 44% – 47% target.
Twilio’s products will only become increasingly popular as we rely on our smartphone apps more and more. It’s customer base is expanding healthily and customers are increasing what they spend. The company posted a full-year 2020 net expansion rate of 137% , which means its 235,000 active customers spent 37% more money on its services.
The pros on Wall Street also look favorably on TWLO. Of 27 analysts offering recommendations for the stock, 24 call it a Buy, and 3 say Hold. There are no Sell ratings. The average price target of $455 implies a 46% upside from its current level, which is around $310.
Where to invest $1,000 right now...
Before you consider buying Twilio, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Twilio.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
Click here to watch his presentation, and decide for yourself...
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Click here to find out the name and ticker of Keith's #1 pick...
