Twilio Stock Swings On Mizuho Upgrade Ahead of Investor Day: Retail Bullish

Twilio Inc. (TWLO) stock was up more than 2% as markets opened on Wednesday after Mizuho’s upgrade to ‘Outperform’ from ‘Neutral’ with a price target of $140, up from $85, ahead of the company's investor day on Jan.23. 

However, the gains were quickly wiped out and the stock tumbled nearly 3% below Tuesday’s closing as investors digested softer-than-expected jobs data and took stock of a CNN report that said President-elect Donald Trump was mulling a national economic emergency declaration.

Mizuho expects "meaningful" sales stabilization and improved revenue visibility for Twilio, and sees opportunity for acceleration to double-digit growth in 2025 and beyond, according to TheFly.

Analysts also anticipate the company will exceed expectations for its 2025 profit margin forecast and may set a long-term target of over 22%. There’s also speculation Twilio could announce a new share buyback program.

After a 50% gain in 2024, Mizuho believes that better insight into Twilio's growth plans and a refreshed outlook could drive the stock to outperform further.

Twilio Inc. Sentiment and Message Volume on Jan 8 as of 10:30 a.m. ET | Source: Stocktwits

Retail sentiment on Stocktwits around Twilio’s stock surged to ‘bullish’ from ‘bearish’ a day ago, as chatter also increased to ‘extremely high’ levels. 

One user noted that Twilio is likely to gain further as it sits at the intersection of various artificial intelligence (AI) applications. 

Twilio provides communication APIs for voice, text, chat, video, and email. Its products are used by major companies such as Uber, Airbnb, Netflix, and HubSpot.

The company’s stock has gained nearly 90% over the last six months. 

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