10 Best SaaS Stocks to Buy According to Billionaires

4. Twilio Inc. (NYSE:TWLO)

Number of Billionaire Investors: 17

Billionaire Holdings: $1.1 Billion

Number of Hedge Fund Holders: 74

Twilio Inc. (NYSE:TWLO) is a customer engagement platform that combines cloud-based communications tools for e-mail, messaging, voice, and video along with contextual customer data and AI to deliver personalized experiences at scale.

Twilio Inc. (NYSE:TWLO) made strong progress on cost front as it reported first ever quarter of GAAP operating profitability. Reported operating profit for Q4 2024 came in at $13.7 million, which was a substantial improvement from GAAP loss from operations of $361.7 million in Q4 2023. Adjusted operating profit, however, was $197 million, ahead of $173 million in prior year quarter. Adjusted EPS for the quarter was also strong at $1.0, versus $0.86 in Q4 2023.

On February 25, Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on Twilio Inc. (NYSE:TWLO) with a $170 price target, citing its strong market position. The company’s growth is driven by increasing customer engagement and its shift toward AI-powered services. The company’s cloud-based communication solutions boost revenue and cash flow, while strategic R&D, partnerships, and M&A efforts support long-term value. Additionally, Twilio’s share repurchase program highlights its financial strength and confidence in future growth, reinforcing the positive outlook.