Personal Finance

Why Twilio's Shares Popped 11% in January

Stock chart with line graphs on top of them.

What happened

Shares of Twilio, Inc. (NYSE: TWLO) jumped 11.2% last month, according to data from S&P Global Market Intelligence , probably on the news that Summit Redstone Partners said the company's stock was a buy and set its price target at $36.

So what

Twilio's shares have been pretty volatile since last year, when the company's stock experienced a long series of dips and pops before ending the year down 18%.

Stock chart with line graphs on top of them.

Image source: Getty Images.

That's why investors were probably pleased to see Summit Redstone Partners' Jonathan Kees initiate coverage of the company in January and place a "buy" rating on Twilio's stock.

"As the company approaches consistent profitability and cash generation in 2018 in our model, we believe that investors will start valuing other non-growth attributes," Kees wrote.

In addition to the analysts' recommendation, Twilio's shares may also have benefited from general optimism in the stock market, as the S&P 500 gained 5.6% last month.

Now what

Twilio's shares have continued to climb in February, mainly because the company just reported a strong fourth quarter, with revenue growth of 41% and an earnings loss per share of $0.03. Analysts were expecting a loss of $0.06. It's still early in the year of course, but Twilio is getting 2018 off to a great start .

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 10 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.

Click here to learn about these picks!

*Stock Advisor returns as of February 5, 2018

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool 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.


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

In This Story

TWLO

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More