Topic: How To Invest

Q: Pat, I bought shares of Twilio after you recommended it as a buy last week and it shot up right away. Thanks! Why did it jump and is it still a buy? Thanks again

Article Excerpt

A: Twilio Inc. $193.33, symbol TWLO on New York (Shares outstanding: 128.6 million; Market cap: $26.1 billion; www.twilio.com) offers a key service to software developers who create mobile apps. Its own software is used to connect apps to essential functions elsewhere on a device, including dealing with phone calls and messaging. Those applications explain why consumers can text or call an Uber driver, for instance, without actually sharing phone numbers. Twilio’s biggest customers include Uber, PayPal and Facebook’s WhatsApp. Twilio’s shares are up a whopping 67.4% since we recommended them last week at $115.47. After the market closed on May 6, the company released results for the latest quarter that beat expectations. In the three months ended March 31, 2020, revenue jumped 56.5%, to $364.9 million from $233.1 million a year earlier. Revenue was higher mostly as a result of sharply increased use of its software for COVID-19-related uses like food delivery, curbside pick-up and retail logistics. Demand also accelerated for remote contact centers,…