Why Twilio Stock Soared Monday

What happened

Shares of Twilio (NYSE: TWLO), a provider of cloud-based communication tools and services for developers, jumped sharply on Monday. As of 2:45 p.m. EDT, the stock was up nearly 11%.

The growth stock's jump higher was fueled by an analyst's move to significantly increase her 12-month price target for the stock.

A chart showing a stock price moving up

Image source: Getty Images.

So what

Morgan Stanley analyst Meta Marshall set a $240 12-month price target for Twilio and reiterated an overweight rating for the stock. This price target is up from $160 previously. The company is better positioned than competition to benefit from enabling customized digital communications, she says. In addition, Marshall believes the second half of 2020 will be strong for the company. 

Now what

Shares of Twilio have surged recently as investors bet that the company is benefiting from organizations' accelerated digital transformations as remote work, e-commerce, and mobile communication have become more integral to the economy than ever before amid social restrictions.

Twilio investors may want to check on the company's recent performance when it reports second-quarter results on August 4. Management guided for its second-quarter revenue to rise 33% to 35% year over year. 

10 stocks we like better than Twilio
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Twilio wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of June 2, 2020


Daniel Sparks owns shares of Twilio. The Motley Fool owns shares of and recommends Twilio. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.