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Why Twilio Stock Climbed Higher Today

By Evan Niu, CFA - Mar 16, 2021 at 12:08PM

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Two separate ARK ETFs scooped up shares in the communications technology specialist yesterday.

What happened

Shares of Twilio (TWLO 4.75%) climbed higher today, up by 5% as of 11:30 a.m. EDT, after widely followed institutional investor Cathie Wood of ARK Invest started to accumulate more shares. The stock took a significant hit during the broad pullback in the tech sector in recent weeks but has started to recover.

So what

ARK has a unique practice of disclosing trades within its actively managed ETFs on a daily basis, and last night's notification shows that two ARK funds scooped up Twilio. ARK Next Generation Internet (ARKW 4.88%) bought 62,702 shares for a portfolio weighting of approximately 0.3%, while the flagship ARK Innovation (ARKK 4.64%) fund acquired over 112,500 shares for a portfolio weighting of around 0.17%. The trading disclosures do not indicate at what prices the transactions occurred, but Twilio shares had a range of $361.01 to $369.97 yesterday.

Green stock chart going up

Image source: Getty Images.

ARK Innovation had sold around 93,200 shares back on Feb. 18, the day after the communications technology specialist reported fourth-quarter earnings that sent the stock to all-time highs. ARK Next Generation Internet purchased around 25,600 shares on Jan. 25. Twilio shares hit as low as approximately $311 during the tech rout in recent weeks, and ARK may be positioning itself for a potential rebound in tech stocks.

Now what

Twilio closed its acquisition of Segment during the fourth quarter. The company's guidance  calls for revenue of $526 million to $536 million in the first quarter, which should result in an adjusted net loss per share of $0.09 to $0.12.

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Stocks Mentioned

Twilio Inc. Stock Quote
Twilio Inc.
$96.55 (4.75%) $4.38
ARK ETF Trust - ARK Innovation ETF Stock Quote
ARK ETF Trust - ARK Innovation ETF
$41.03 (4.64%) $1.82
ARK ETF Trust - ARK Next Generation Internet ETF Stock Quote
ARK ETF Trust - ARK Next Generation Internet ETF
$53.03 (4.88%) $2.47

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

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