Twilio: Full Steam Ahead In Q2, Buy The Dip

Aug. 08, 2025 1:25 PM ET
Twilio Inc. (TWLO) Stock
TWLO
Gary Alexander
31.62K Followers
Comment(1)

Summary
With the S&P 500 at highs, I recommend rotating into undervalued small/mid-cap stocks like Twilio for better risk/reward.Twilio's strong Q2 results, improved organic growth, and raised guidance make its post-earnings dip a buying opportunity.Valuation is attractive: Twilio trades at just ~14x forward FCF, with recurring revenue and improving fundamentals.

jaanalisette

With the S&P 500 hovering near all-time highs amid a volatile Q2 earnings season, investors are rightly nervous about rich valuations amid a possibly shaky economy. In my view, now is the time to invest with extreme caution: B

This article was written by
Gary Alexander
31.62K FollowersWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:
I/we have a beneficial long position in the shares of TWLO either through stock ownership, options, or other derivatives. 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. 

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Twilio: Full Steam Ahead In Q2, Buy The Dip (NYSE:TWLO)

The article recommends buying Twilio (TWLO) stock due to its strong Q2 performance, improved guidance, and attractive valuation at 14x forward FCF, despite the S&P 500 being near all-time highs.