5 Cathie Wood Stocks That Can Rebound in 2023

3. Twilio Inc. (NYSE:TWLO)

YTD Share Price Decline as of June 28: 65.07%

Number of Hedge Fund Holders: 75

Twilio Inc. (NYSE:TWLO) is a California-based communications company that offers voice, SMS, MMS, SIP trunking, and call center products and services. The stock has declined over 65% year to date as of June 28. Cathie Wood’s ARK Investment Management held more than 5 million shares of Twilio Inc. (NYSE:TWLO) in Q1 2022, worth $827.5 million, representing 3.45% of the total portfolio. The hedge fund elevated its position in the company by 24% in Q1. 

On June 9, Scotiabank analyst Nick Altmann initiated coverage of Twilio Inc. (NYSE:TWLO) with an Outperform rating and a $215 price target. The analyst contended that while Twilio Inc. (NYSE:TWLO) “may not be as clean as it has been in the past”, it remains one of the quickest organically expanding companies of its size. The analyst noted that Twilio Inc. (NYSE:TWLO) continues being the market leader in Communications Platform as a Service, which he called “the fastest-growing end-market in software”.

Among the hedge funds tracked by Insider Monkey, 75 funds were bullish on Twilio Inc. (NYSE:TWLO) at the end of March 2022, compared to 80 funds in the last quarter. David Goel and Paul Ferri’s Matrix Capital Management is a significant shareholder of the company, with 2.6 million shares worth $431.3 million. 

Here is what Aristotle Capital Management Focus Growth Fund has to say about Twilio Inc. (NYSE:TWLO) in its Q1 2022 investor letter:

“Twilio detracted from performance in the first quarter, as the increase in interest rates continued to affect valuations of high growth, high valuation technology stocks. The multiple compression seen across the sector did not spare Twilio, even with strong fourth quarter results that beat expectations and a first quarter 2022 guidance for top line growth to be above consensus. We continue to believe that Twilio is a secular winner in the CCaaS space and view the long-term growth and profitability targets as achievable.”