TWLO’s P/E ratio near 300 and decelerating revenue growth raise concerns despite strong customer base and AI positioning.
Twilio (NYSE: TWLO) has fallen 20% after a strong start to the year, as investors question its valuation. The stock trades at a P/E ratio near 300, despite projected revenue growth slowing to 14%-15% in 2026.
The company reported 20% year-over-year revenue growth in Q1, supported by over 400,000 customers, including 68% of Fortune 500 firms. However, Q2 guidance of 15.5%-16.5% growth disappointed, trailing high-growth AI peers.
Goldman Sachs maintained a $300 price target, citing Twilio’s AI capabilities, but valuation concerns persist amid broader market shifts.