What Happened?
Shares of cloud communications infrastructure company Twilio (NYSE: TWLO) jumped 7.4% in the afternoon session after the company announced the launch of new platform features.
Twilio announced the general availability of three new features aimed at enhancing real-time, personalized customer interactions for businesses. These new tools include "Event Triggered Journeys," which allow businesses to react to customer actions instantly, and "Data Residency for Email (EU)," a feature that helps companies comply with European data regulations. The announcements were met with optimism from other Wall Street firms as well, with Wolfe Research and JMP Securities also maintaining positive ratings, pointing to the company's strategic direction and growing interest in its technology.
Is now the time to buy Twilio? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Twilio’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was a day ago when the stock gained 4.3% on the news that an analyst at Piper Sandler raised the price target on the shares and named the company a top pick.
Piper Sandler analyst James Fish boosted the firm's price target on Twilio to $140 from $121, while maintaining an "Overweight" rating on the stock. The new target suggests a potential upside of over 23% from the stock's previous closing price. The analyst cited increased confidence in the company's ability to achieve "durable, double-digit growth." This positive outlook is supported by expected benefits from artificial intelligence integrations and a likely price increase in U.S. messaging services. The move reflects growing optimism on Wall Street for the cloud communications platform.
Twilio is up 16.1% since the beginning of the year, but at $126.54 per share, it is still trading 14.7% below its 52-week high of $148.35 from January 2025. Investors who bought $1,000 worth of Twilio’s shares 5 years ago would now be looking at an investment worth $564.41.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
