Stifel Cautious on Twilio (TWLO) Despite Agentic AI Tailwinds

Twilio Inc. (NYSE:TWLO) is one of the 10 AI Stocks Making Waves on Wall Street. On August 8, Stifel analyst J. Parker Lane reiterated a Hold rating on the stock with a $110.00 price target. The hold rating comes despite Twilio achieving its third consecutive quarter of double-digit revenue growth.

“Twilio reported its third consecutive quarter of double-digit revenue growth and fifth consecutive of acceleration while providing what we view as a strong top-line guide for 3Q and the full year.”

Profit margins were under pressure  as the lower-GM Messaging business made up more of the company sales, dragging down the company’s overall gross margin. Verizon’s increased A2P messaging rate also impacted margins in the quarter and guide, resulting in $6 million in incremental pass-through to the company’s reported revenue.

An analyst studying charts and graphs in her office, pouring over details of the company’s portfolio performance benchmarking.

Nevertheless, Stifel noted that Twilio continues to benefit from agentic AI tailwinds. These AI customers rely heavily on Voice which is why they are profitable and reap high gross margins.

“As such, the full-year op income guide was only maintained, leading to after-hour weakness. Finally, the company continues to benefit from agentic AI tailwinds, noting “many” AI customers are spending at a seven-figure run-rate, while also noting these AI startups carry far higher gross margins (80% blended GM for top 10) considering their reliance on Voice. We maintain our Hold rating and $110 target price on TWLO shares.”

Twilio Inc. (NYSE:TWLO) is a leading cloud communications platform-as-a-service (CPaaS) company.

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