5 Stocks to Buy Now According to Michael Pausic’s Foxhaven Asset Management

3. Twilio Inc. (NYSE:TWLO)

Pausic’s Stake Value: $338.5 million
Percentage of Michael Pausic’s 13F Portfolio: 9.24%
Number of Hedge Fund Holders: 98

Twilio Inc. (NYSE:TWLO), incorporated in 2008, is a California-based cloud communications platform as a service company. Ranked 3rd on our list of the 10 stocks to buy now according to Michael Pausic’s Foxhaven Asset Management, Twilio Inc. (NYSE:TWLO) has a market capitalization of $61.04 billion.

Michael Pausic’s Foxhaven Asset Management currently holds 858,827 shares in Twilio Inc. (NYSE:TWLO) worth over $338.5 million, representing 9.24% of the fund’s portfolio. As of the second quarter of 2021, 98 hedge funds in Insider Monkey’s database of 873 funds held stakes in Twilio Inc. (NYSE:TWLO) compared to 99 funds in the first quarter.

On July 29, Twilio Inc. (NYSE:TWLO) posted its quarterly earnings report for the second quarter of 2021, with earnings per share of -$0.11, beating the estimates by $0.02. In addition, the revenue over the period was $668.93 million, up 66.9% on a year-over-year basis, surpassing the forecast estimates by $69.8 million.

Lakehouse Capital, in its second-quarter 2021 investor letter, mentioned Twilio Inc. (NYSE:TWLO). Here is what the fund said:

“The Fund held 20 positions as of the end of June and exited four during the year (including) Twilio. The companies we exited were sold almost entirely on the basis of their valuations getting stretched well past their norms and to levels where the return profile no longer offered the asymmetric upside that led us to invest in the first place. We dislike selling on valuation as great growth companies are hard to find and letting winners run is an important facet of a winning growth strategy, however, we’re not gluttons for punishment either and in each of those cases we redeployed capital towards other high-quality growth companies with less demanding valuations.”