Why Twilio Stock Surged Today
Shares of Twilio (NYSE: TWLO) have surged today, up by 13% as of 11:30 a.m. EST, after getting a bullish initiation from Wall Street. Tech stocks are also enjoying a strong rally after selling off aggressively for weeks.
Jefferies has initiated coverage on Twilio with a buy rating while assigning a price target of $415, which represents nearly 30% upside from yesterday's closing price. Analyst Samad Samana acknowledges that the communications technology specialist was "modestly profitable" last year but believes that it's justifiable for Twilio to invest in future growth at the expense of near-term profits. Twilio fetches premium valuation multiples, but Jefferies believes that the company's growth trajectory and ability to scale justify the high expectations.
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Source Fool.com
