Twilio (NYSE:TWLO) shares jumped in the morning session today after a report from The Information indicated that the cloud communications platform operator may receive a bid from its Dutch rival, Bird.
According to the report, Bird is in discussions with external investors to make a bid for Twilio. Bird was last valued at roughly $3.8 billion. In comparison, Twilio’s market capitalization currently stands at about $12.7 billion. In 2021, Bird had acquired email marketer SparkPost in a $600 million deal. The M & A deal was aimed at boosting its North American operations and competing with Twilio. The company had raised funds from names such as Eurazeo, Tiger Global, and Owl Rock at the time.
Last month, Twilio appointed Khozema Shipchandler as its CEO and expressed optimism about exceeding its financial outlook for the fourth quarter. The company is slated to report its Q4 numbers on February 14, with Wall Street expecting Twilio to post an EPS of $0.57 on revenue of $1.05 billion for the quarter.
What Is the Target Price for TWLO Stock?
Overall, the Street has a Moderate Buy consensus rating on Twilio, and the average TWLO price target of $74.65 implies a modest 6% potential upside in the stock. Shares of the company have gained nearly 17% over the past year.
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