Twilio’s (NYSE: TWLO) pullback is the time to buy this stock because it offers an opportune discount in a high-quality tech-growth stock with AI and automation exposure. The stock price rose by 50% in January, extending a trend that began in 2024 and was driven by reinvigorated growth and accelerating results.
Although the FQ4 results and Q1 guidance are tepid relative to the expectations, they align with the trends and the bar was set high. The worst that can be expected is a stock price reset followed by higher prices later in the year. Because the company’s performance includes robust cash flow, healthy financial condition, and aggressive share repurchases, the rebound could come quickly, and fresh long-term highs could be set before mid-year.
