Twilio isn’t necessarily a company you hear about often, but when you do—it’s because they threw a middle finger to every investor who’s been calling it washed up since 2021. In short, shares of the tech behemoth skyrocketed nearly 21% on Friday, hitting a two-year high like it was trying to remind everyone why they cared in the first place (A.k.a. Full on resurrection), 

(Source: Giphy) 

The reasoning for the newfound surge? Well for one, the company announced a $2 billion stock buyback. And while that move alone would’ve been enough to get the stock moving, Twilio didn’t stop[ there. They also posted some skull-crushing Q4 numbers—11% year-over-year revenue growth, beating the pants off analyst expectations of 8%. Turns out, Cyber Week was a goldmine for Twilio’s bread-and-butter products like messaging and email. Email spam, anyone? 

But, but, but… the real catalyst? AI. I really wish I had something better and more grand for you here… but, the AI hype strikes again. Twilio spent its Investor Day hyping up its plans to inject artificial intelligence into its core offerings, and Wall Street absolutely lapped it up. 

(Source: StockTwits) 

For instance, Mizuho bumped their price target to $150, Oppenheimer went full send and raised theirs to $160 (from $90, no less), and suddenly every analyst who’s been ghosting Twilio for the past two years is acting like they’ve always been a fan. Even Barclays, who’s still playing hard to get with an Equal Weight rating, upped their target from $80 to $120. Translation: When it came to Twilio’s Investor Day, whispering “AI” in a room full of analysts was like throwing raw meat to a pack of wolves. 

That’s how nuts it seems. Especially since this is Twilio we’re talking about here—a company that’s spent the last two years crawling out of the smoking crater it fell into during the tech bloodbath. In fact, Twilio’s stock was left for dead, written off as yet another SaaS has-been that couldn’t keep up with the big dogs. But now with the company throwing buybacks around and the fact that it’s up 131% over the past six months is as much a reflection of just how low it sank as it is of any newfound brilliance. 

(Source: Yahoo Finance) 

On the other hand, while the numbers are legit, and the growth story is compelling—I can’t help but feel like this is a masterclass in investor manipulation. Announce a buyback, name-drop AI a few times, and suddenly you’re Wall Street’s golden child again. It’s almost insulting how predictable this is. 

So where does this leave Twilio? For now, they’re basking in the glow of a solid quarter and an even better PR play. But the margin for error is razor-thin. Wall Street loves a comeback story, but it loves tearing them apart even more. If Twilio slips up and doesn’t deliver on its AI promises—it won’t take long for the knives to come back out. Until then, they’ve earned their moment in the sun. Just don’t forget how quickly clouds can roll in.

(Source: Giphy) 

In the meantime, do what you will with this information and place your bets accordingly. As always, stay safe and stay frosty, friends! Until next time… 

P.S. The markets are making new highs, and greed is sweeping the markets left, right, and twice on Sunday! The best part? Our recent $DWTX alert skyrocketed 876% in less than ONE-DAY! Click here to join Stocks.News to make sure you take advantage of our next alert…

Stocks.News holds positions in Amazon as mentioned in the article.