Canopy Growth stock tumbles after announcing $200 million share sale plan
Investing.com - Stifel maintained its Hold rating and $110.00 price target on Twilio (NYSE:TWLO) despite the company reporting its third consecutive quarter of double-digit revenue growth. According to InvestingPro data, Twilio’s revenue grew 9.27% in the last twelve months, while the company’s overall financial health score is rated as "GOOD" with strong cash flow metrics.
The communications platform provider delivered its fifth consecutive quarter of revenue acceleration while providing what Stifel characterized as a strong top-line guidance for the third quarter and full year. With a robust current ratio of 4.78x and more cash than debt on its balance sheet, Twilio maintains strong financial flexibility.
Margin pressure emerged as a key concern as the lower-gross-margin Messaging business increased its revenue mix by 260 basis points year-over-year, creating a primary driver for gross margin decline with a 150 basis point headwind.
Additional margin pressure came from Verizon (NYSE:VZ)’s increased A2P messaging rate, which contributed $6 million in incremental pass-through to Twilio’s reported revenue, leading the company to merely maintain its full-year operating income guidance rather than raise it.
Stifel noted Twilio continues benefiting from agentic AI tailwinds, with "many" AI customers spending at seven-figure run-rates, while these AI startups carry far higher gross margins at approximately 80% blended gross margin for the top 10 customers due to their reliance on Voice services.
In other recent news, Twilio Inc. reported impressive financial results for the second quarter of 2025. The company achieved earnings per share of $1.19, which exceeded the analysts’ forecast of $1.05 by 13.33%. Additionally, Twilio’s revenue reached $1.23 billion, surpassing the expected $1.19 billion. Despite these positive earnings and revenue outcomes, investor concerns caused a decline in the stock’s premarket performance. In other developments, Bernstein SocGen Group adjusted its price target for Twilio, lowering it from $130 to $119 while maintaining a Market Perform rating. The research firm pointed to ongoing challenges in Twilio’s recent history, highlighting previous unsuccessful attempts to boost growth. These recent developments provide investors with a clearer picture of Twilio’s current financial standing and market perception.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.