Twilio Inc TWLO 4.6% shares are trading higher by 4.8 percent on Friday after the stock received a major vote of confidence from JPMorgan.
Analyst Mark Murphy upgraded the stock to Outperform and laid out seven things about Twilio the market seems to be underappreciating:
- 1. After surging to $70 following its IPO, Twilio’s stock is now trades at only a slight valuation premium to its cloud peers at 4.7x EV/FTM.
- 2. Twilio’s 12 consecutive quarters of at least 70 percent revenue growth is impressive even among other high-growth names.
- 3. Amazon.com, Inc AMZN 0.38%, which is invested in Twilio, is more of a partner than a competitor.
- 4. Twilio’s massive total addressable market (TAM) of $46 billion is more legitimate than other companies’ TAMs because there is room for multiple providers in the space.
- 5. Twilio is now past the 31 million-share lockup expiation in February, which likely weighed on share price.
- 6. Twilio’s has cut its reliance on higher-risk variable revenue by 60 percent in just two years.
- 7. Twilio’s services are more reliable than those of its competitors.
“Based on our customer due diligence, we believe…
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