5 Best AI Stocks to Buy for 2021 and Beyond

3. Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holders: 98

Twilio Inc. (NYSE:TWLO) stands third on our list of the best AI stocks to buy for 2021 and beyond. It is a cloud communications company that allows software developers to communicate using its web service APIs.

In July, Baird raised its price target on Twilio Inc. (NYSE:TWLO) to $450, while keeping an ‘Outperform’ rating on the shares. The firm’s analyst highlighted the company’s strong competitive position and digital transformation. In Q2 2021, Twilio Inc. (NYSE:TWLO) posted an EPS of -$0.11, beating the consensus by $0.02. The company reported revenue of $668.9 million, up 66.9% from the prior-year quarter. For Q3, the company expects revenue in the range of $670 to $680 million versus the estimates of $639.3 million.

Of the 873 hedge funds tracked by Insider Monkey, 98 hedge funds have positions in Twilio Inc. (NYSE:TWLO) in Q2 2021, compared with 99 in the previous quarter. The total value of these stakes is over $7.8 billion.

Lakehouse Capital mentioned Twilio Inc. (NYSE:TWLO) in its Q1 2021 investor letter. Here is what the firm has to say:

“The Fund held 20 positions as of the end of June and exited four during the year (including) Twilio. The companies we exited were sold almost entirely on the basis of their valuations getting stretched well past their norms and to levels where the return profile no longer offered the asymmetric upside that led us to invest in the first place. We dislike selling on valuation as great growth companies are hard to find and letting winners run is an important facet of a winning growth strategy, however, we’re not gluttons for punishment either and in each of those cases we redeployed capital towards other high-quality growth companies with less demanding valuations.”