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Why Twilio Inc. Is Soaring Over 15%

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Twilio Inc. (NYSE: TWLO) is up more than 15% in pre-market trading following the release of its Q2 earnings results after the market closed yesterday. The company reported revenues of $147.75 million and adjusted EPS of $0.03, which obliterated analysts’ expectations of $130.4 million and an adjusted net loss of $0.06 per share.

For the third quarter, Twilio said it expects revenue in the range of $150 million-$152 million and adjusted EPS of $0.02-$0.03, which crushed expectations of $135.9 million in revenue and an adjusted loss of $0.00 per share.

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It was a breathtaking quarter for Twilio, so I think the market has responded correctly by sending its stock soaring. Twilio is now up more than 200% year-to-date, which is destroying the performance of the Nasdaq Composite Index (QQQ) and S&P 500 (SPY), and while I would not be a buyer all the way up here, I would definitely consider it on any significant pullback in the future.

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