15 Software Infrastructure Stocks Outperforming In 2025

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3. Twilio Inc. (NYSE:TWLO)

Twilio Inc. is a customer engagement platform solutions provider that operates in the Twilio and Twilio Communications segments. It offers different software solutions and application programming interfaces for interactions between end users and customers. The stock’s 35% YTD returns have excited many investors after a dull first 9 months period for the company in 2024. The stock has more than doubled in a year.

Twilio’s resurgence is possibly due to it being on the cusp of an inflection point. Apart from an improving business, the company’s financial strength is also going up. It took some cost-reduction measures as well as efficiency improvements, both of which are contributing to its improving free cash flow.

The topline acceleration that the company now expects is set to finally make the company profitable on an operating income level in fiscal 2025. Once that happens, the business will have developed much more if it continues at the current pace. This inflection point has the potential to re-rate the stock, bringing incredible returns for investors.

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