3 Bargain Tech Stocks to Buy Ahead of Q2 Earnings - TWILIO

High-growth tech stocks were among the market's best performers before the general tech sell-off in 2022 that sent the NASDAQ 100 into a bear market earlier this year.

Rising interest rates, rising inflation and a potential recession are just some of the concerns plaguing the sector. Despite this, there are three tech companies worth considering ahead of their upcoming earnings, as they all have plenty of room to grow their businesses, making them solid long-term investments.

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Twilio

• Earn Date: After close of business on Thursday, August 4
• EPS Growth Forecast: -81.8% y/y
• Revenue Growth Forecast: +37.9% year-on-year
• Year-to-Date Performance: -66.2%
• Market Capitalization: $16.2 billion

Twilio (NYSE:TWLO), which provides a cloud communications platform that allows developers to build, scale and operate customer engagement within software applications, has fallen out of favor amid a broad wave of selling in software stocks this year, especially those that are unprofitable or have high P/E ratios. Shares of the cloud communications giant recently fell to their lowest level since March 2020 and are about 80.5% below their all-time high of $457.30 reached in February 2021. Twilio beat earnings expectations last quarter but gave weak guidance. Consensus forecasts Q2 revenue to rise 38% to an all-time high of $922.3 million on strong demand, but an EPS loss of $0.20 due to increased costs related to the technology firm's continued expansion efforts. Expect an update on active customer accounts (ACA) to see if it can maintain the 14% year-on-year increase it reported in Q1. Twilio is considered one of the leading names in the communications platform as a service (CPaaS) industry and counts Twitter (NYSE:TWTR), Coca-Cola (NYSE:KO) and Lyft (NASDAQ:LYFT) among its customers.