Trade Tracker: Joe Terranova buys Twilio

Key Concepts

• Twilio (TWLO)
• Revenue Growth Decline
• Multi-channel Diversification (Messaging, Voice, Email)
• Stock Price Targets ($151, $200)
• Profitability (Projected for 2026)

Twilio (TWLO) Investment Rationale

Joe discusses his recent purchase of Twilio (TWLO), framing it as an "old school" investment, a name previously discussed extensively between 2018 and 2021. He notes that he previously advocated for and owned the stock, which experienced a significant run-up during the COVID-19 pandemic.

Past Performance and Challenges

During the COVID period, Twilio demonstrated substantial revenue growth, often in the range of 50%, 60%, and even 70%. However, the company faced a subsequent period of significant revenue growth decline. The core challenge identified was the need for diversification beyond its primary offering, messaging. Twilio needed to expand into other communication channels such as voice and email.

Current Strategy and Future Outlook

The transcript indicates that this diversification strategy is now unfolding. Joe points to a one-year chart, highlighting $151 as a significant level that could signal a potential breakout if the stock price surpasses it. Looking at a five-year chart, he sees a strong runway for the stock to potentially reach $200. Furthermore, there is an expectation of profitability for Twilio as the company moves into 2026.