5 Stocks to Sell Now According to Julian Robertson’s Hedge Fund

3. Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holders: 75

At the end of Q4 2021, Tiger Management’s stakes in Twilio Inc. (NYSE:TWLO) were valued at $2.63 million. However, in Q1 2022 the billionaire’s fund sold its 10,000 shares in Twilio Inc. (NYSE:TWLO) and completely discarded the stock.

This May, Wells Fargo analyst Michael Turrin slashed his price target on Twilio Inc. (NYSE:TWLO) to $180 from $225, citing multiple compressions across the software sector. However, the analyst maintained an Overweight rating on the Twilio Inc. (NYSE:TWLO) shares.

At the end of Q1 2022, 75 hedge funds held stakes in Twilio Inc. (NYSE:TWLO) worth $3.25 billion. This is compared to 80 positions in Q4 2021 with stakes of $5.13 billion.

RiverPark Funds, an investment management firm, published its “RiverPark Large Growth Fund” third-quarter 2021 investor letter in which it mentioned Twilio Inc. (NYSE:TWLO). Here is what the firm said:

“Twilio: TWLO shares were also down sharply to end the year. Just like after 1Q and 2Q, despite another quarterly beat in 3Q, management guidance–which we believe to be conservative– disappointed some investors. Third quarter revenue of $740 million was up 65% year over year, significantly exceeding management’s guidance of 50%-52% revenue growth. Management guided 4Q21 revenue to +40% revenue growth, which was ahead of sell side expectations, but likely below buy side expectations. Investors were also troubled by the departure of COO George Hu, who has been credited with rebuilding Twilio’s sales and marketing teams after arriving from SaleForce.com shortly after the company’s IPO in 2016.

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%.”