Down 55% From Record Highs, Is Twilio Stock a Buy Now?

Twilio (NYSE: TWLO) has been hit especially hard during this tech company sell-off over the past few months. The stock peaked at over $400 in early 2021, but with a sky-high valuation of 36 times sales at the time, it failed to impress investors enough during its 2021 earnings reports, despite posting strong financial results.

Now that Twilio has fallen 55% from those highs, the company trades at a much cheaper valuation -- around 13 times sales before it reported its fourth-quarter earnings. Analysts were expecting a weak quarter with low top-line growth, but instead Twilio kept chugging along, posting figures that were much better than expected. Shares took off, jumping as much as 25% in the hours after the company reported these results. With a cheap valuation and unexpectedly strong earnings, is now the time to buy Twilio?

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Source Fool.com