Analyst Michael Funk of Bank of America Securities maintained a Sell rating on Twilio (TWLO – Research Report), reducing the price target to $80.00.
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Michael Funk’s rating is based on several concerns about Twilio’s future performance amid macroeconomic challenges. He highlights the potential risks to Twilio’s revenue growth due to elevated macro uncertainty, which could impact messaging volumes and overall demand. While the first quarter revenue results are expected to be positive, the guidance for organic revenue growth in 2025 might be threatened by tightening budgets as companies face economic pressures.
Additionally, Funk points out that a weaker consumer market and potential cuts in advertising budgets could further stall Twilio’s growth. The company’s consumption-based business model, heavily reliant on messaging volumes, is particularly vulnerable to a slowdown in economic activity. Despite a recent recovery in messaging volumes, the sustainability of this trend is uncertain, and Funk suggests that a credible path to consistent revenue growth is necessary for significant stock price improvement.
According to TipRanks, Funk is an analyst with an average return of -10.1% and a 34.17% success rate. Funk covers the Technology sector, focusing on stocks such as Autodesk, Box, and Alarm.