12 Best Booming Stocks to Invest in Now

Page 10 of 11

2. Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holdings: 52

Year-to-Date Performance as of January 30: 37.26%

Twilio Inc. (NYSE:TWLO) is a leading customer engagement and cloud communications platform that enables businesses to build, scale, and manage personalized interactions with their customers across various channels. The company provides a comprehensive suite of application programming interfaces (APIs) and software solutions, including messaging, voice, email, and user identity and authentication.

Twilio Inc.’s (NYSE:TWLO) stock surged following the release of its preliminary fourth-quarter 2024 results. The company reported an 11% year-over-year revenue growth for the quarter ended December 31, 2024. This performance is seen as a testament to the company’s ability to maintain and expand its market share in the highly competitive cloud communications and customer engagement sectors. The company also announced a positive outlook for 2025, with revenue expected to grow at 7% to 8% and generate $825 million to $850 million in free cash flow.

Furthermore, Twilio Inc. (NYSE:TWLO) is now targeting a 21% to 22% adjusted operating margin for fiscal 2027. This is a substantial increase from the 16% adjusted operating margin reported in the third quarter of 2024. The margin expansion is a result of the company’s focus on cost optimization and operational efficiency.

On January 8, Mizuho Securities upgraded Twilio Inc. (NYSE:TWLO) to Outperform from Neutral, citing the company’s improving financial performance. This upgrade, along with the positive market sentiment, has driven investor interest in Twilio Inc. (NYSE:TWLO).

Page 10 of 11