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Twilio (TWLO) Surges 6.9%: Is This an Indication of Further Gains?

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Twilio (TWLO - Free Report) shares ended the last trading session 6.9% higher at $284.53. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 19.5% gain over the past four weeks.

The optimism surrounding the stock can be attributed to strong demand for Twilio’s communications platform, with second-quarter revenue rising 22% year over year to $1.5 billion and organic growth accelerating to 17%. The company also raised its full-year 2026 organic revenue growth outlook to 13%-13.5%, buoyed by strong growth in messaging, voice and software add-ons are also supporting the company’s growth outlook.

This company is expected to post quarterly earnings of $1.46 per share in its upcoming report, which represents a year-over-year change of +16.8%. Revenues are expected to be $1.51 billion, up 16.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Twilio, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TWLO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Twilio belongs to the Zacks Internet - Software industry. Another stock from the same industry, Cellebrite DI Ltd. (CLBT - Free Report) , closed the last trading session 0.9% higher at $11.66. Over the past month, CLBT has returned 0.6%.

For Cellebrite DI Ltd., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. This represents a change of +21.4% from what the company reported a year ago. Cellebrite DI Ltd. currently has a Zacks Rank of #4 (Sell).

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