Dump Twilio, Buy This Explosive Growth Stock Instead
Twilio (NYSE: TWLO) has been a top performer on the stock market over the past year. Share prices for this cloud communications specialist have more than tripled, thanks to a big spike in revenue as more organizations have shifted from physical contact centers to cloud-enabled ones in the wake of the novel coronavirus pandemic.
The bad news for potential new investors is that Twilio shares have become extremely expensive, as evident from a price-to-sales (P/S) ratio of nearly 31. As a result, potential shareholders concerned about the stock's valuation might be hesitant to buy in.
Fortunately, there is an alternative to Twilio that's trading at a much cheaper valuation, has been delivering impressive growth quarter after quarter, and has delivered terrific stock price gains over the past year. It's still more reasonably priced as well. That stock is Bandwidth (NASDAQ: BAND), and it could be an ideal bet for investors looking to take advantage of the rapidly growing cloud communications space without paying a heavy premium. Let's see why.
Source Fool.com
