Key Points
Twilio’s growth profile is improving, thanks to the growing adoption of the company’s AI communications tools.
The company is now witnessing stronger growth in its customer base, and it is also winning more business from existing customers.
Twilio’s attractive valuation and earnings growth potential indicate that the stock is built for solid upside in the future.
Twilio (NYSE: TWLO) is a cloud communications company that’s known for its application programming interfaces (APIs) that help its clients build software tools to remain in touch with their customers through various channels such as voice, text, email, video, and instant messaging. Its growth has accelerated in recent quarters thanks to the integration of artificial intelligence (AI)-focused tools into its communications platforms.
However, Twilio stock has witnessed a lot of volatility on the market this year. It has lost just over 4% of its value in 2025 as of this writing, driven by the company’s mixed quarterly performances. It fell like a rock in February this year, and a similar story unfolded following the release of its second-quarter results on Aug. 7.
