5 Artificial Intelligence Stocks in Cathie Wood’s Portfolio

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In this article, we discuss 5 Artificial Intelligence Stocks in Cathie Wood’s Portfolio. If you want to read our detailed analysis of Wood’s hedge fund and recent developments, go directly to read 10 Artificial Intelligence Stocks in Cathie Wood’s Portfolio.

5. Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holders: 96

Twilio Inc. (NYSE:TWLO) is an American cloud communications platform that uses AI algorithms to recommend relevant information and responses.

ARK Investment Management started building its position in Twilio Inc. (NYSE:TWLO) during the fourth quarter of 2016. In Q3 2021, the hedge fund held a $1.03 billion worth of stake in the company, which accounted for 2.48% of its 13F portfolio. Recently, Twilio Inc. (NYSE:TWLO) launched a $50 million investment fund that would pursue different organizations to explore new avenues of customer engagement. On December 9, Barclays upgraded Twilio Inc. (NYSE:TWLO) to Overweight, while maintaining a $375 price target, which implies a 35% upside.

At the end of Q3 2021, 96 hedge funds tracked by Insider Monkey held stakes in Twilio Inc. (NYSE:TWLO), compared with 98 in the previous quarter. The total value of these stakes is over $6.36 billion. Besides ARK Investment, SCGE Management was one of the company’s leading shareholders in Q3, holding roughly 2.8 million shares.

RiverPark Funds mentioned Twilio Inc. (NYSE:TWLO) in its Q3 2021 investor letter. Here is what the firm has to say:

TWLO shares were also a top detractor for the quarter. Just like after 1Q, despite another quarterly beat in 2Q, management guidance–which we believe to be conservative–disappointed some investors. Second quarter revenue of $669 million was up 67% year over year, significantly exceeding management’s guidance of 47%-50% revenue growth. Management guided 3Q21 revenue to 50%-52% revenue growth, which was ahead of expectations, but due to continued investment also guided to a non-GAAP operating loss of $25 million-$30 million, which was below the Street’s forecast of a $12 million loss.

The COVID crisis has accelerated the adoption of the company’s cloud-based, integrated communications platform that allows companies in a wide range of businesses to embed digital communications capabilities (video, chat, voice, SMS, fax, and email) into their customer facing applications without needing to build back-end infrastructure and interfaces. Twilio’s total addressable market is now greater than $40 billion, which should grow by 50% over the next few years, providing a strong secular tailwind for the company. We expect the company’s gross margin to continue to expand from 54% in the second quarter toward management’s long-term goal of 60%-65%, and, as the company grows to scale, we expect its non-GAAP operating margin to expand to 25%.”

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