What Twilio Inc.’s (NYSE:TWLO) 28% Share Price Gain Is Not Telling You
Twilio Inc. (NYSE:TWLO) shareholders are no doubt pleased to see that the share price has bounced 28% in the last month, although it is still struggling to make up recently lost ground. Looking back a bit further, it’s encouraging to see the stock is up 79% in the last year.
Following the firm bounce in price, given close to half the companies operating in the United States’ IT industry have price-to-sales ratios (or “P/S”) below 2.6x, you may consider Twilio as a stock to potentially avoid with its 3.7x P/S ratio. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s as high as it is.
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