What happened
Shares of Twilio (TWLO -2.99%), a cloud-based communications platform, were climbing today as some technology stocks considered to be stay-at-home stocks rose amid increasing COVID-19 lockdowns in China.
The tech stock jumped by as much as 5.5% today and had gained 3.3% as of 3:19 p.m. ET.
So what
Some investors are starting to warm back up to companies that help people communicate virtually as China continues to implement its zero-COVID policy.
Image source: Getty Images.
China put the entire city of Shanghai into lockdown last month, and some experts believe that Beijing could be next. The Chinese government's strict COVID restrictions are hampering some companies, but they're also boosting investor sentiment in virtual communication companies like Twilio.
Twilio helps companies around the world implement text messaging systems, video chatting, live video streaming, and even email. With no end in sight for China's lockdowns, some investors appear to be coming back to technology companies that could help boost communications during COVID restrictions.
Now what
While Twilio investors are no doubt happy with today's gains, they may also want to temper some of their expectations for the company's stock -- at least for right now.
The stock market has been particularly volatile lately, and Twilio's share price is still down 67% over the past 12 months. That doesn't mean its stock can't rebound, but investors are processing a lot of daily news, including COVID, rising inflation, and the war in Ukraine.
With so much for investors to be digesting, it's likely that Twilio -- and other technology stocks -- could continue to experience significant share-price swings in the coming months.
