Cathie Wood is Buying These 5 Stocks in September

3. Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holders: 64

Twilio Inc. (NYSE:TWLO) is a California-based company providing a cloud communications platform. On September 11, the stock traded higher as the company trimmed its workforce by roughly 11% and reaffirmed its guidance for the third quarter of 2022. Cathie Wood’s fund has owned a stake in Twilio Inc. (NYSE:TWLO) since Q4 2016, with minor breaks over the years. She added to her Twilio Inc. (NYSE:TWLO) position in September, buying about 91,500 shares. The latest purchase was made on September 13.

BTIG analyst Matt VanVliet on September 15 reiterated a Buy rating on Twilio Inc. (NYSE:TWLO) and lowered the price target on the stock to $105 from $130. The 11% workforce reduction and its potential impacts on the broader consumer demand environment is a positive catalyst that will support its forward growth plan, the analyst told investors. However, it is also likely to limit top-line growth as Twilio Inc. (NYSE:TWLO) deals with a smaller workforce. 

According to Insider Monkey’s data, 64 hedge funds were long Twilio Inc. (NYSE:TWLO) at the end of the second quarter of 2022, compared to 75 funds in the preceding quarter. David Blood and Al Gore’s Generation Investment Management is the one of the largest stakeholders in the company, with 4.4 million shares worth over $370 million. 

Here is what Carillon Scout Mid Cap Fund has to say about Twilio Inc. (NYSE:TWLO) in its Q1 2022 investor letter:

“Twilio (NYSE:TWLO), the messaging and marketing automation software platform, sold off along with other highly valued software-as-a-service providers. Although the company management team expects continued strong growth, investors have grown concerned that demand could slow following the surge in digital communication during the pandemic.”