Twilio's stock has entered a 20% correction, and its price-to-earnings ratio near 300 is difficult to justify given the company's own guidance for slowing revenue growth. The company reported 20% year-over-year revenue growth in the first quarter but expects only 15.5% to 16.5% growth in the second quarter and 14% to 15% for the full year 2026. While Goldman Sachs issued a $300 price target citing Twilio's positioning in agentic AI infrastructure, the impact of that opportunity has not yet appeared in the company's forward guidance. Twilio serves over 400,000 customers including 68% of Fortune 500 companies, but the decelerating growth and elevated valuation raise concerns that investors may be overestimating the AI catalyst.
Twilio IncRevenue growth deceleration and high P/E ratio raise valuation concerns.