Twilio, Zoom, and Other Cloud Communications Stocks Are a Buy for 2023
Cloud communications companies Zoom Video Communications (NASDAQ: ZM) and Twilio (NYSE: TWLO) were left for dead in 2022. Zoom fell more than 60% on the year, and Twilio more than 80%. The reason? A bear market that flipped investors' collective focus from growth and momentum to bottom-line valuation.
At this point, Zoom and Twilio don't fit into either the explosive growth or the value stock category. Each has its flaws and associated risks even after enduring a brutal sell-off. However, if you liked cloud communications stocks like these a year ago, there are even more reasons to like them in 2023.
Zoom's revenue growth has stalled out as of late as it continues to struggle with departing individual and small business subscribers. Paired with a record run in the U.S. dollar (a side effect of the Fed's pace of interest rate hikes), it's masking Zoom's double-digit growth as it keeps picking up lots of new, large business customers.
Source Fool.com
