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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.