Fundamental analysis
Twilio is an American cloud company that provides a programmable environment for calling, messaging, and other types of communication through a custom web API.
The company was founded in 2008 in Seattle, Washington. But today it is based in San Francisco, California.
The company’s sales are growing every year. For the year 2023, it has reached $4.1 billion in sales (a 9% increase from 2022). However, net income is in the negative. For the year 2023, the firm made USD 1 billion.
The company promotes that it uses AI in its products and in learning.
Twilio expects to repurchase $3 billion of its stock in 2024.
The company plans to reach book profit in 2025.
Twilio has reduced its headcount by 35% as of mid-2022. At the same time, the company has reduced stock-based compensation.
Results
For Q1 2024, the company achieved sales of $1.05 billion with an operating loss of only $44 million (an 84% reduction in loss).
The company is growing at 7%.
Twilio currently has 313,000 active customers and employs 5,580 employees.
The company repurchased $1.5 billion worth of stock. Thus, it plans to repurchase approximately USD 1.5 billion by the end of 2024.
Technical analysis
Although the moving averages point to a downward trend, they are de facto horizontal and parallel. This indicates that the market is undecided on which direction the stock should take. This trend has been going on for one year.
The price oscillates between $78 per share and $44 per share. There are several bands separated by supports and resistances.
The stock price reached highs in 2021 when it traded at well over $430 per share.
The RSI is in the neutral zone.
Conclusion
The technical analysis of the stock is very interesting. The stock has been stagnant for a year now. But if the price rises just a little bit, the moving averages could cross into growth. The first resistance is then up to $70 per share.
But since the company’s economic situation is still the same (still in the red), the stock doesn’t even have much reason to rise from a fundamental standpoint. If, on the other hand, the support at $56 does not hold and the moving averages do not cross, the share price may fall further.