Twilio - The Case To Buy The Shares

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About: Twilio Inc. (TWLO)
by: Bert Hochfeld
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Bert Hochfeld
Long/short equity, Growth, event-driven, research analyst
Summary

Twilio shares have compressed to a point at which they present an attractive value for investors.

The results announced on Oct. 30 were an accustomed beat of a few percent on revenue and a few pennies in terms of EPS.

Guidance, however, was less than the prior consensus, by about 2%-3% in revenues and a few pennies in EPS.

Investors reacted by selling the shares down 11%, and they are now down 36% since the high made in late July.

The outlook for this company is far brighter than headlines suggest-I believe the slowing growth story is wrong and that the company will achieve elevated growth for years to come.

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How strong is their moat, how large is their TAM, how good is their sales execution, how intelligent