Why Twilio Inc. (TWLO) Surged on Friday

We recently compiled a list of the 10 Firms Defy Market Pessimism. In this article, we are going to take a look at where Twilio Inc. (NYSE:TWLO) stands against the other firms.

Ten companies finished firmer on Friday, bucking an overall market pessimism, over a series of catalysts sparking buying appetite.

Wall Street’s main indices all finished in the red territory, with the Dow Jones down by 0.32 percent, the S&P 500 dropped 0.29 percent, and the Nasdaq down 0.50 percent.

In this article, let’s take a look at which companies defied broader market pessimism and explore the reasons behind their growth.

Friday’s top advancers only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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Twilio Inc. (NYSE:TWLO)

American communications cloud company Twilio Inc. (NYSE:TWLO) grew its share prices by more than 22 percent on Friday to close at $136.23 apiece as investors snapped up shares following a projected improvement in its fourth-quarter earnings performance.

In a regulatory filing late Thursday, Twilio said it expects to report sales growth of 11% percent year-on-year when it publishes full results next month.

Meanwhile, analysts are expecting the company to post $1.16 billion in sales, or higher by 10 percent compared with last year.

The company also said it expects non-GAAP income from operations for the fourth quarter of 2024 and fiscal year 2024 to be above the top-end of the guidance ranges provided in late October.

Overall TWLO ranks 2nd on our list of the firms that defy market pessimism. While we acknowledge the potential of TWLO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TWLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.