Twilio Stock (TWLO) Faces Pressure Even as Growth Story Builds

Twilio Inc. (NYSE:TWLO) is one of the Must-Watch AI Stocks on Wall Street. On September 17, RBC Capital analyst Rishi Jaluria reiterated an Underperform rating and $75.00 price target on the stock. The rating followed a group call with company management and investors.

The firm came away positive from the call, stating that it believes Twilio will sustain its path toward double digit growth driven by messaging share gains and early traction in cross-selling and AI-enabled voice offerings.

The company is faced with near-term gross margin pressure from carrier fee increases. However, the management has highlighted several offsetting strategies including pricing actions, cloud cost optimization, and multi-product platform selling.

Finally, partnerships such as those with Microsoft, along with the company’s “neutral, model-agnostic posture” support the company’s platform narrative. Meanwhile, buybacks remain the main use of capital over big acquisitions.

Twilio Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service (CPaaS) company.

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