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BTIG Starts Coverage on Twilio (TWLO), Sees Path to Sustainable Double-Digit Growth

Twilio Inc. (NYSE:TWLO) is included among the 12 Best Long Term US Stocks to Buy Now.

On December 17, BTIG analyst Nick Altmann initiated coverage of Twilio Inc. (NYSE:TWLO) with a Buy rating and a $165 price target. In his research note, he said the company is executing well, while the total addressable market is improving and setting up for faster growth in 2026. That outlook supports the long-term case for the market share leader. BTIG also sees sustainable double-digit growth as achievable over the medium term.

Twilio shares are up more than 26% since the start of 2025. The move has been driven largely by strong quarterly results. In the third quarter of 2025, analysts were looking for earnings of $1.07 per share on $1.25 billion in revenue. Twilio delivered $1.25 per share in profit instead, along with $1.3 billion in sales. Revenue increased 15% year over year, as the company “saw broad-based strength across customer segments, ranging from start-ups to enterprises to ISVs,” according to CEO Khozema Shipchandler.

Non-GAAP earnings rose 22% from a year earlier. On a GAAP basis, results swung from a $4.9 million loss last year to a $40.9 million profit this quarter.

Cash generation stood out even more. Free cash flow climbed over 30% to $247.5 million during the quarter. Twilio Inc. (NYSE:TWLO) is also seeing rising demand from AI-focused customers. Several AI companies are using Twilio’s platform to build conversational AI tools. Revenue from its 10 largest voice AI start-up customers increased more than tenfold from a year ago. That momentum looks durable, with adoption of AI in cloud contact centers expected to grow more than five times over the next decade.

Twilio Inc. (NYSE:TWLO) is an American cloud communications company headquartered in San Francisco. It provides programmable tools that let developers handle calls, text messages, and other communication functions through web-based APIs.

While we acknowledge the potential of TWLO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TWLO and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Best Blue-Chip Stocks with Growing Dividends and 12 Best Dogs of the Dow to Invest in.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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