Traders Flock Twilio Inc. (TWLO) After JP Morgan Upgrade, Strong Growth

Twilio Inc. (NYSE:TWLO) rose in intraday trading by 4.96% to $28.26 on April 7, after JP Morgan Securities upgraded the stock to “overweight” from “neutral” with a $36 per share price target.

In a report by CNBC, JP Morgan analyst Mark Murphy said Twilio has seen one of the highest growths among other tech giants in its industry after growing to over 70% in the last 12 quarters. Murphy turned the spotlight on Twilio this time, believing not many investors now the traffic it is getting, especially having clients such as Uber, WhatsApp and Airbnb.

Furthermore, the analyst noted that

Most recently, Twilio Inc. (NYSE:TWLO) launched a fax service to heed to the call of its users, saying fax may be old school but the programmable fax will allow old-school companies to automate part of their system.

Twilio is a cloud communications platform for building SMS, Voice & Messaging applications on an API built for global scale. It has a $2.47 billion market capitalization.

What Does The Smart Money Sentiment Say?

The Smart Money was bullish on the stock as hedge funds flocked Twilio Inc. (NYSE:TWLO) quarter over quarter in 2016. Out of 742 funds we track at Insider Monkey, the pool of funds owning Twilio shares increased to 19 funds amounting to $89 million in the fourth quarter of 2016, compared to only 9 funds amounting to $69 million in the third quarter of the same year.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

The Bottom Line

Traders are flocking Twilio Inc. (NYSE:TWLO) today after some analyst upgrade and backing that recognized the company’s growth potential. For more reading, take a look at the top 25 paid android apps here.