Should You Buy the Twilio Dip?

Twilio (NYSE: TWLO) has enjoyed a strong start to the year but now finds itself in a 20% correction. Many companies use Twilio's platform to communicate with customers via text, video, artificial intelligence (AI) chatbots, and other capabilities. It's natural for stocks to take breathers after long runs, but a high P/E ratio offers some reason for concern.

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Twilio has good fundamentals, but it's hard to justify a stock with a P/E ratio hovering near 300. The company delivered 20% year-over-year revenue growth in the first quarter. Those sales come from a solid foundation, which includes more than 400,000 customers and 68% of Fortune 500 companies.

However, growth investors aren't concerned only with the current foundation. They want revenue acceleration and enticing long-term growth prospects. If those are good, investors can more easily justify a stock that is trading near a 300 P/E ratio, but that isn't the c

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/buy-twilio-dip-145000182.html)