Why Twilio Stock Is Worth Buying Despite a Disappointing Earnings Report
History repeated itself when Twilio (NYSE: TWLO) announced its third-quarter results, with investors ignoring its terrific pace of growth and panicking over the company's guidance for a bigger-than-expected loss. The cloud communications specialist smashed Wall Street's estimates convincingly on both revenue and earnings, and its sales forecast for the current quarter also exceeded expectations.
But, investors pressed the panic button after Twilio said that it expects to post a loss in the fourth quarter, compared to a profit in the prior-year period. The stock tumbled more than 10% after the report, just like a quarter ago when Twilio's Q2 results followed a similar script. However, investors looking to buy a cloud communications company for the long run should take a closer look at Twilio after its latest pullback, for the following reasons.
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Source Fool.com
