What Happened?

Shares of cloud communications infrastructure company Twilio (NYSE: TWLO) jumped 4.3% in the afternoon session after an analyst at Piper Sandler raised the price target on the shares and named the company a top pick. Piper Sandler analyst James Fish boosted the firm's price target on Twilio to $140 from $121, while maintaining an "Overweight" rating on the stock. The new target suggests a potential upside of over 23% from the stock's previous closing price. The analyst cited increased confidence in the company's ability to achieve "durable, double-digit growth." This positive outlook is supported by expected benefits from artificial intelligence integrations and a likely price increase in U.S. messaging services. The move reflects growing optimism on Wall Street for the cloud communications platform.

After the initial pop the shares cooled down to $117.70, up 4% from previous close.

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What Is The Market Telling Us

Twilio’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Twilio is up 7.9% since the beginning of the year, but at $117.70 per share, it is still trading 20.7% below its 52-week high of $148.35 from January 2025. Investors who bought $1,000 worth of Twilio’s shares 5 years ago would now be looking at an investment worth $525.84.

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