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Twilio Inc. (TWLO) enables developers to build, scale, and operate real-time communications within software applications through a cloud communication platform and a customer engagement platform. The company operates both in the United States and internationally.
Over the past three years, TWLO’s revenues have increased at a 50% CAGR. Its total assets increased at a 34.6% CAGR during the same time horizon.
TWLO has adopted sweeping changes to improve the efficiency of its execution and accelerate its path to profitability. On February 13, the company announced its decision to reduce its workforce by approximately 17% to drive meaningful cost savings. To rationalize expenses further, on December 9, 2022, it announced its voluntary delisting from the Long-Term Stock Exchange (LTSE) to remain solely listed on the NYSE.
TWLO has also announced that, moving forward, it will operate two separate business units: Twilio Communications and Twilio Data & Applications. This strategic realignment enables Twilio to execute each business’s key priorities better.

TWLO’s management has expressed its confidence regarding the effectiveness of the abovementioned changes by announcing the authorization of a share repurchase program of up to $1.0 billion of its outstanding Class A common stock.
TWLO’s stock has gained 17.1% over the past month to close the last trading session at $73.88.
TWLO is trading above its 50-day and 200-day moving averages of $57.86 and $70.99, respectively, indicating an uptrend.
Here is what may help the stock maintain its performance in the near term.
Improving Financials
During the fourth quarter of the fiscal that ended December 31, 2022, TWLO’s revenue increased 21.6% year-over-year to $1.03 billion, while its non-GAAP gross profit increased 19.9% year-over-year to $517.78 million.
During the same period, the company’s non-GAAP operating income and non-GAAP net income attributable to common shareholders came in at $32.87 million and $41.05 million, compared to losses of $27.19 million and $36.26 million, respectively, in the prior-year quarter.
As a result, TWLO’s non-GAAP net income attributable to common shareholders came in at $0.22, compared to a loss of $0.20 per share in the previous-year quarter.
Favorable Analyst Estimates
For the first quarter of fiscal 2023, TWLO is expected to report a total revenue of $1 billion, up 14.2% year-over-year. During the same period, the company’s EPS is expected to come in at $0.21, compared to its muted performance during the previous-year quarter.
TWLO has impressed by surpassing consensus EPS estimates in each of its trailing four quarters.
For fiscal 2023, TWLO’s revenue is expected to increase 12.7% year-over-year to $4.31 billion, while its EPS is expected to come in at $1.25, compared to a loss per share of $0.15 during fiscal 2022.
Both revenue and EPS are expected to keep growing over the next two fiscal years.
Justified Valuation
Given the optimistic analyst expectations, TWLO is trading at a forward P/E of 58.89, a premium of 187.7% above the industry average of 20.47. Similarly, its forward EV/EBITDA and Price/Sales multiples of 19.32 and 3.21 are 46.3% and 15.2% above the respective industry averages of 13.21 and 2.79.
However, despite upward momentum in price and business performance, TWLO’s forward EV/Sales and Price/Book multiples of 2.53 and 1.39 also compare favorably to the respective industry averages of 2.84 and 3.81.
Technical Indicators Look Promising
MarketClub’s Trade Triangles show that TWLO has been trending UP for each of the three time horizons. The long-term trend has been UP since February 16, 2023, while the intermediate-term and short-term trends have been UP since January 13, 2023, and February 28, 2023, respectively.
Source: MarketClub
The Trade Triangles are our proprietary indicators, comprised of weighted factors that include (but are not necessarily limited to) price change, percentage change, moving averages, and new highs/lows. The Trade Triangles point in the direction of short-term, intermediate, and long-term trends, looking for periods of alignment and, therefore, strong swings in price.

In terms of the Chart Analysis Score, another MarketClub proprietary tool, TWLO scored +90 on a scale from -100 (strong downtrend) to +100 (strong uptrend), indicating that the uptrend will likely continue. Although TWLO remains in the confines of a bullish trend, traders should use caution and utilize a stop order.

The Chart Analysis Score measures trend strength and direction based on five different timing thresholds. This tool takes into account intraday price action, new daily, weekly, and monthly highs and lows, and moving averages.
Click here to see the latest Score and Signals for TWLO.
What’s Next for This Stock?
Remember, the markets move fast and things may quickly change for this stocks. Our MarketClub members have access to entry and exit signals so they’ll know when the trends starts to reverse.
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Best,The MarketClub Team[email protected]

Since my last major update in November, the gold futures price has increased by almost 12%. At that time, most readers had chosen the bullish target of $2,089, where the price would retest the all-time high.
The gold futures chart is due for an update as it has reached a significant point in the current retracement following its recent peak at $1,975.
Source: TradingView
The gold futures price had been steadily rising for three months from the start of November until the beginning of February, where it reached a top of $1,975.
However, the market was hit when the “Jobs Report Dropped A Bombshell On The Markets”, which caused a significant drop in the value of many assets, including gold.

The recent price action in gold futures has been notable, marked by a sudden drop of $100 at the beginning followed by a slower decline in pace as the price retraced almost 50% and hit $1,811 by the end of February.
The question is whether this loss of half of the preceding rally is enough to consider the current bounce as a reversal.
In the chart above, two scenarios have been outlined for gold futures. The first scenario is represented by the blue CD segment, which suggests an immediate reversal in the straight move up, covering the same distance as the AB part. The target for this move is around $2,170.
In addition to the blue scenario outlined in the chart, there is another potential path marked with green annotations. This scenario suggests an extended retracement, with the current price growth seen as a temporary “dead cat bounce” that may lose momentum and lead to another leg down towards the 61.8% Fibonacci retracement level at $1,755. The RSI should fail or make a false break as it reached the crucial 50 level.
One observation that supports the green path is that retracements often take the same amount of time as the preceding move, and sometimes even exceed it in duration.
The current retracement reached only 1/3 of the preceding rally, which lasted for 61 bars. If we add another 61 bars to the blue B point, the green C2 point should not start until the beginning of May.
The potential for more aggressive Fed tightening also supports the green path, as the market could drop again if interest rates are raised close to 6%. The market may pause to wait for more jobs and inflation data, as the pace of these factors could provide more clues about the Fed’s rate peak.
The potential for a deeper pullback also implies a lower target for the green D2 scenario. In this case, the price may only reach the area of the previous all-time high, which is around $2,100, rather than surpassing it. This level was your winner of the November ballot.
Six years ago, in March 2017, a similar situation occurred in the gold chart, as I pointed out in my post titled “Gold & Silver: Half Is Enough?” The retracement at that time also reached 50%, and two scenarios were presented, just like in the current post.
In the following chart, you can see how it unfolded back in March 2017 and whether history could repeat itself.
Source: TradingView
In 2017, there were two potential scenarios for the gold chart retracement, similar to the current post.

The blue scenario saw the establishment of the C point at the 50% retracement level of the AB segment, followed by a straight rally up along the blue path, with the price surpassing the B point. While the rally showed promise, it stopped short at 73% of the projected target, reaching $1,297 instead of the expected $1,336.
However, in the unpredictable market, a rally that exceeds the B point and covers more than half of the projected path could be considered successful.
Looking back, we can adjust the markings on the chart, as I have done with black 1 and 2, to indicate the actual segments that occurred, including the red two-legged complex consolidation in between. Ultimately, black 2 traveled 91% of the distance covered by black 1, which confirms the updated black labeling.

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Intelligent trades!
Aibek BurabayevINO.com Contributor
Disclosure: This contributor has no positions in any stocks mentioned in this article. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.