27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Shares of Twilio Inc (NYSE:TWLO) are trading near six-month lows, and the recent pullback may be a function of "confusion" related to its growth outlook, according to Morgan Stanley.
The Analyst
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Meta Marshall upgraded Twilio from Equal-weight to Overweight with a price target lifted from $130 to $135.
The Thesis
Twilio should be considered a "visionary" communications company as it looks to remove constraints plaguing the traditional B2C communication landscape, Marshall said in a Thursday upgrade note. (See his track record here.)
Investors are confused about Twilio's growth, since its new and higher margin products like SendGrid, Flex and Authy are not broken out, the analyst said.
This dynamic should change soon, as Twilio is expected to help investors see the true growth and better understand the long-term profit potential, he said.
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Among all companies covered in the unified communications space, Twilio could be the most transformative over the coming five to 10 years as demand grows for tools that support digital transformation grows, Marshall said.
Morgan Stanley is modeling a 21% compounded annual growth rate over the coming four years for next-gen communication companies, but Twilio's superior platform should help it outperform at a 32% CAGR rate, the analyst said.
The stock's multiple of 0.26 times EV/2020 revenue versus the average of 0.34 times is "too stiff of a discount," according to Morgan Stanley.
Price Action
Twilio shares were up 1.66% at $114.42 at the time of publication Thursday.
Related Links:
The Sell-Side Digs Into Twilio Earnings
Short Sellers Double Down On Twilio Following Rally
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.