Shares in cloud technology company Twilio (TWLO) darkened today despite analysts declaring that it is in a prime position to boost revenue growth via AI adoption.
Self-Serve Success
Following investor meetings with Twilio management, analysts at Oppenheimer said in a report today that Twilio was entering a new phase of its business. This referred to its efforts to scale self-serve adoption, drive cross-selling and expand into AI-driven services.
Oppenheimer said this new direction could support revenue growth beyond targets of 7% to 8% for 2025 and operating margins above the 21% to 22% goal for 2027.
According to the report, self-serve demand at Twilio is growing at a double-digit rate, with only 37% of customers currently using multiple products. Self-serve is where customers manage and configure their own accounts without Twilio support. This, Oppenheimer said, presents an opportunity to expand adoption of offerings such as email, voice, and AI-powered services to clients.
All in the Voice
In addition, Oppenheimer said Twilio is poised to capitalize on AI-driven customer demand for its Voice Intelligence service potentially generating “incremental messaging and voice traffic.” Voice Intelligence is an AI-powered tool that helps analyze calls and automates customer actions. Oppenheimer also highlighted Twilio’s “disciplined capital allocation” and potential for share buybacks.
It maintained its outperform rating on Twilio, with a price target of $160.
Is TWLO a Good Stock to Buy Now?
On TipRanks, TWLO has a Moderate Buy consensus based on 16 Buy, 5 Hold and 2 Sell ratings. Its highest price target is $185. TWLO stock’s consensus price target is $149.55 implying an 51.16% upside.
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