Is Twilio (TWLO) Turning Sports Partnerships Into a Durable AI Engagement Advantage?

• Earlier this month, the LA Kings announced a multi‑year partnership making Twilio their official away helmet sponsor from the 2025‑26 NHL season, featuring prominent logo placement and co‑created content that showcases Twilio’s technology during regular season and playoff games.
• Beyond brand exposure, the deal uses Twilio’s engagement platform to power more personalized fan communications and interactive experiences, highlighting real‑world adoption of its customer engagement tools by a major professional sports franchise.
• Next, we’ll examine how this high‑profile LA Kings partnership, especially its focus on applied AI‑driven fan engagement, affects Twilio’s investment narrative.

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Twilio Investment Narrative Recap

To own Twilio, you need to believe its customer engagement platform and applied AI tools can offset pressure from lower margin messaging and rising carrier fees, while gradually improving profitability. The LA Kings partnership looks more like a brand and proof‑of‑concept win than a needle‑moving financial event in the near term, so it does not materially change the immediate catalyst of executing on higher margin software and AI products or the key risk of margin compression.

What ties this sponsorship to the broader story is Twilio’s push into AI‑powered, real‑time engagement, which mirrors its Microsoft conversational AI collaboration announced at SIGNAL 2025. That partnership is directly aligned with the main growth catalyst of deeper omnichannel adoption and smarter automation, and it shows how high profile brands like the Kings could become showcases for Twilio’s higher value software and data capabilities if execution stays on track.

Yet even with these AI and engagement opportunities, investors should be aware that rising low margin messaging revenue and carrier fees could still...

Read the full narrative on Twilio (it's free!)

Twilio’s narrative projects $5.9 billion revenue and $449.9 million earnings by 2028. This requires 7.9% yearly revenue growth and about a $429.7 million earnings increase from $20.2 million today.

Uncover how Twilio's forecasts yield a $138.04 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Eight Simply Wall St Community fair value estimates for Twilio span roughly US$68 to US$175 per share, underscoring how far apart individual views can be. Against this backdrop, Twilio’s need to lift margins away from low margin messaging and toward higher value AI and data products could significantly influence which of these scenarios proves closer to reality, so it is worth exploring several of these viewpoints before deciding how to think about the stock.

Explore 8 other fair value estimates on Twilio - why the stock might be worth as much as 23% more than the current price!

Build Your Own Twilio Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Twilio research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Twilio research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Twilio's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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