Please ensure Javascript is enabled for purposes of website accessibility

Why Twilio, Etsy, and Amazon.com Jumped Today

By Dan Caplinger – Nov 7, 2018 at 4:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Find out how these stocks helped lead the market higher.

The stock market soared on Wednesday, celebrating election results that came in largely as investors had expected. With the Democrats taking over the U.S. House of Representatives but the Republicans retaining control of the Senate, market participants seem to believe that the status quo is likely to remain in place through 2020, and that helped send major benchmarks up roughly 2%. Some stocks did even better, and Twilio (TWLO 1.91%), Etsy (ETSY -0.84%), and Amazon.com (AMZN 1.74%) were among the best performers on the day. Here's why they did so well.

Twilio makes a connection

Shares of Twilio soared 35% after the cloud communications platform provider reported its third-quarter financial results. The company saw a 68% jump in revenue from the previous year's third quarter, and Twilio said it made a modest profit on an adjusted basis, reversing a year-earlier loss. The company not only boosted its customer counts but got existing clients to deepen their relationships with Twilio's platform, and co-founder and CEO Jeff Lawson pointed to new products to help clients take greater advantage of cloud computing to facilitate connections with their organizations and with their own customers. With plenty of potential uses, such as the key-replacing SmarterKey remote access system, Twilio has the capacity to drive technological advancement into the future.

Black Smarterkey device sitting on a wood floor next to window shutters.

Image source: Twilio.

Etsy ramps up before the holidays

Etsy stock climbed 24% in the wake of the company's release of third-quarter financials. Gross merchandise sales jumped 21% to $922.5 million, accelerating from its growth pace in previous quarters, and Etsy reported better conversion rates and stronger pricing power that in turn is driving greater investment in improving the shopping experience on the creative-goods marketplace. Revenue soared more than 40% from year-earlier levels, and even though higher spending on marketing sent profits lower, Etsy has put itself in great position to take advantage of the holiday season and more effectively challenge traditional retailers with its offerings.

Amazon bounces back

Finally, shares of Amazon.com picked up 7%. The e-commerce behemoth's share-price gains likely stemmed from general excitement among market participants about a more favorable environment for stocks than some had feared, and after declines that had lopped roughly 25% off the stock, Amazon shareholders were ready for a comeback. Today's news items included Amazon's launch of Alexa and music services in the Mexican market, as well as expansion of grocery pickup from its Whole Foods subsidiary and some favorable comments from stock analysts. With so much potential for growth, Amazon.com almost seemed briefly to become a value stock, and investors today took advantage.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Etsy, and Twilio. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$115.76 (1.74%) $1.98
Etsy, Inc. Stock Quote
Etsy, Inc.
ETSY
$95.66 (-0.84%) $0.81
Twilio Inc. Stock Quote
Twilio Inc.
TWLO
$69.43 (1.91%) $1.30

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.