Buying Twilio Stock During The Market Panic

Summary

• Like the rest of the market, Twilio stock is under heavy selling pressure lately.
• The company keeps growing at full speed, and long-term opportunities are outstanding.
• Communications are critical in times of social distancing, and Twilio will emerge from this crisis stronger than ever.
• Due to booming revenue and a declining stock price, valuation ratios are coming down rapidly.
• From current prices, chances are that Twilio will deliver solid returns for investors over the next 1 to 3 years.
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The 2020 market selloff is creating both huge short-term risks and massive long-term opportunities for investors. It is important to manage your overall portfolio risk in a smart way during this period, but you also want to capitalize on the opportunity to buy high-quality growth stocks at attractive valuation levels. With this in mind, I have been buying Twilio (NYSE:TWLO) stock during the market crash in recent weeks.

It is hard to know what will happen to the stock price in the next 1 to 3 months, but over the next 1 to 3 years there is a good chance that Twilio stock will deliver remarkably attractive returns from current levels.

The Business And The Stock Price

Twilio made historical highs at $150 per share in June of last year, and the stock has retraced by over 35% from those levels. However, the company keeps firing on all cylinders and growing at full speed as of the most recent earnings report.

Like all other companies in the world, Twilio will be facing increased uncertainty in the near term, and the economic slowdown could have a material impact on the business. But the company is in a position of strength to benefit from growing demand for all kinds of online communications in the years ahead.

Twilio is a communication platform-as-a-service that developers can utilize to facilitate communication via text, voice, video, and email in 180 countries. When you send a voice message via WhatsApp, or when you get a notification from Uber, those services are powered by Twilio.

These kinds of communications are increasingly crucial for corporations in times of social distancing, and the current crisis will highlight the utmost importance of building strong relationships with customers and providing the best possible engagement experience via world-class communications tools.

According to data

Analyst’s Disclosure:I am/we are long TWLO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.