Twilio's stock surged in the premarket trading on Friday, soaring 22.57% following the company's investor day presentation. Investors were enthused by Twilio's bullish guidance and growth prospects, particularly its focus on artificial intelligence (AI) and partnerships with OpenAI and Amazon Web Services.
The cloud communications platform provider projected its total addressable market (TAM) for communications and data to grow at an annual rate of 11% to $119 billion by 2028. Twilio expects its operating margin to reach 21%-22% by 2027, indicating improved profitability. Additionally, the company's board approved a new $2 billion share buyback program, underscoring its commitment to returning value to shareholders.
Analysts also praised Twilio's efforts to expand into new areas, including more experimental parts of AI. The company noted that over 9,000 AI companies are already building on Twilio services, highlighting the potential for growth in the AI market. Analysts believe Twilio's focus on innovation, future growth drivers, and margin expansion potential contributed to the stock's surge.
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