The shares of cloud communications concern Twilio Inc (NYSE:TWLO) are higher this afternoon, as stocks cheer encouraging tweets about U.S.-China trade relations. In addition, we're watching TWLO stock for two more reasons: today's upbeat analyst attention from Needham, and how seasonality favors the bulls in the short term.
Diving right in, Needham started coverage of Twilio shares with a "buy" rating and $165 price target -- in uncharted territory for the stock. The analysts "foresee continued exceptional growth" for the company, and waxed optimistic on its platform, market position, and "highly efficient developer-led sales model."
And, as alluded to earlier, TWLO shares tend to heat up in the summer. Specifically, Twilio has been one of the best optionable stocks to own in calendar weeks 25 through 28, per data from Schaeffer's Quantitative Analyst Chris Prybal, averaging a gain of 22.6% during this time frame, looking at returns since inception.
The equity has been in a slow burn higher since early 2018, with pullbacks contained by its 80-day and 160-day moving averages. In fact, the shares notched an all-time high of $148.80 just last Monday, June 10, and were last seen 1.5% higher to trade at $142.79. Another 22.6% surge from current levels would place TWLO around $175 -- in new-high territory.
Traders looking to speculate on another hot summer for the security should consider options. TWLO's Schaeffer's Volatility Index (SVI) of 46% is higher than just 9% of all other readings from the past year, suggesting near-term options are pricing in relatively modest volatility expectations for the shares.