Twilio Inc. (NYSE:TWLO) is one of the Hot AI Stocks on Wall Street’s Radar. On August 8, Piper Sandler analyst James Fish raised the price target on the stock to $144.00 (from $140.00) while maintaining an Overweight rating.
The price target raise follows Twilio’s second-quarter results that demonstrated top-line strength and steady demand for services such as Messaging and Voice AI. However, the firm highlighted several issues that sent shares lower after hours.
“Q2 results showed top-line strength and demand drivers like Messaging and Voice AI remaining well intact, but the combination of lower GPM due to new A2P fees and increasing Messaging (i.e. international) mix, lack of EBIT guide raise given ongoing investments, coming stop of business-unit disclosures, minimal near-term anticipated impact from pricing given the deployment (which is better frankly for long-term), and 2H FCF reduction, has sent shares lower AH.”
Regardless, Twilio’s core business seems to be doing well with actual dollars of profitability/FCF continuing to increase. This is why the firm is recommending to buy the stock, particularly those who wish for an exposure to digital communications and Voice AI infrastructure.
While we acknowledge the potential of TWLO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 15 AI Stocks Taking Wall Street by Storm and 10 High Flying AI Stocks This Week. Disclosure: None.
