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Why Twilio Stock Jumped on Thursday

By Daniel Sparks – Jun 17, 2021 at 11:42AM

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Is the tech stock's recent dip a buying opportunity?

What happened

Shares of Twilio (TWLO -1.11%), a provider of cloud-based communication tools and services for developers, jumped on Thursday. The stock rose as much as 9.2% but shares were up 7.9% as of 11:15 a.m. EDT.

The stock is likely up primarily because of bullishness in the broader market on Thursday for growth stocks like Twilio.

Arrows pointing up

Image source: Getty Images.

So what

Though the overall market has been hovering around all-time highs recently, many growth stocks are still down significantly from a growth stock-focused sell-off earlier this year. Twilio is one of these stocks. Even including today's gain, shares are still down about 20% from a high of $457.30 in February.

The stock's sharp rise on Thursday came as many other growth stocks were up several percentage points or more. Perhaps some investors believe the pullback is a good buying opportunity.

Now what

Though Twilio's stock seems to be in the doldrums recently, its underlying business is seeing impressive growth. First-quarter revenue rose 62% year over year to $590 million, blowing past a consensus analyst forecast for revenue of $533 million. The company's guidance for second-quarter revenue to be between $591 million and $601 million was similarly ahead of analysts' average view for revenue of $577 million during the period.

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Twilio. The Motley Fool has a disclosure policy.

Stocks Mentioned

Twilio Stock Quote
$45.58 (-1.11%) $0.51

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