Twilio Inc. (TWLO) announced the launch of a new cloud-based platform, Twilio Live. The new service will enable its clients to integrate live, interactive video/audio features more rapidly and efficiently into their apps.
Shares of the U.S.-based cloud communications platform were down 3.6% to close at $375.35 on July 14.
As a result of the pandemic, demand for video and audio live streaming has surged. According to a report from Twilio, 98% of business organizations agreed that video was the preferred way of communication during the pandemic.
Twilio Live aligns with the company’s initiatives to develop a best-in-class platform that will help businesses enhance their customers’ audio and video live streaming experiences. Twilio Live is currently in beta mode and will provide low latency at scale to millions.
Hakim Mehmood, GM of Voice and Video at Twilio, commented, “The rise of virtual experiences and the popularity of platforms like Clubhouse and TikTok have signaled that the next big channel for customer engagement is live audio and video streaming. ”
He further added, “Twilio Live gives businesses the building blocks they need to create personalized experiences for their communities and interact with millions of customers in a fresh and exciting way.” (See TWLO stock charts on TipRanks)
The company also said that it has successfully completed the previously announced acquisition of Zipwhip in a 50:50 cash and stock transaction worth $850 million.
The addition of Zipwhip, a U.S.-based company that provides toll-free messaging, will enhance Twilio’s messaging capabilities.
Wolfe Research analyst Alex Zukin recently increased the price target from $440 to $480 (27.9% upside potential) and reiterated a Buy rating on the stock.
Zukin believes the strong momentum will continue at Twilio aided by the robust growth potential in its messaging and voice services.
Consensus among analysts is a Strong Buy based on 19 Buys and 2 Holds. The average Twilio price target of $444.32 implies 18.4% upside potential to current levels.
Twilio scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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