Twilio Inc. Stock Jumps More Than 35.00%!


And “Earnings Predictions Members” Make Potential Profit Of 283%!
Even In This Market Uncertainty!
More Profit Likely Today!

by Ian Harvey

November 08, 2018

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GETTING OUT WHILST THE GOING IS GOOD!

GREED CAN BE THE UNDOING OF A GOOD PROFIT!

Twilio Inc. (NYSE:TWLO)

Twilio Inc. (NYSE:TWLO), reported earnings Tuesday after the market closed and then soared as much as 36.5% on Wednesday, following the release of strong third-quarter results. The stock closed yesterday's trading 35.4% above Tuesday's final price.

Twilio's volatility should continue to run high for the foreseeable future. And “Earnings Predictions Members”, with a call option, realized 283% potential profit!

As well, smaller sector peer SendGrid (NYSE: SEND) also beat Wall Street's estimates in its own second-quarter report; which is good news for Twilio and its investors because Twilio is in the process of acquiring SendGrid for $2 billion.

PATIENCE PAYS OFF!

YOU NEED TO BE IN TO PROFIT!

The Trade……

…….from…… “Earnings Predictions for the Week Beginning November 05, 2018

The Details Presented Previously……..

Twilio Inc. (NYSE:TWLO), offering a Cloud Communications Platform, which enables developers to build, scale and operate real-time communications within software applications, will report earnings after the market closes. The consensus earnings estimate is $0.02 per share on revenue of $151.44 million; but the Whisper number is for $0.03 per share. The company's guidance was for earnings of $0.02 to $0.03 per share on revenue of $150.00 million to $152.00 million. Consensus estimates are for year-over-year earnings growth of 116.67% with revenue increasing by 50.62%.

Revenue is projected to growth 48% and 27% in the current and next years as well. Moreover, current cash flow growth is hitting over 82%, and the firm certainly holds that "segment leader" position we mentioned earlier.

Twilio’s most recently published quarterly earnings results saw it post $0.03 earnings per share (EPS) for the three-month period, surpassing analysts’ consensus estimate of -$0.05 by $0.08. The publicly-traded organization reported revenue of $147.75 million for the quarter, compared to the average analyst forecast calling for $130.37 million, which was surpassing the analyst consensus estimate.

Twilio, being one of the best-performing stocks so far in 2018 with a 190% advance to-date, just announced the buyout of email communications outfit SendGrid (NYSE: SEND) for $2 billion.

Twilio operates a library of cloud-based software telecommunications tools for software developers. The idea is to make life easy for these programmers when they design new ways for businesses to keep in touch with customers. The model has worked wonders: Twilio's annualized revenues have doubled since the company went public during the summer of 2016.

The company's catalog of software covers voice, text, chat, and video communications tools, but email has proved a big gap in its suite. That's where SendGrid comes in, as it is the leader in cloud-based email services. SendGrid says it has over 74,000 customers and sends emails to more than half of the world's email addresses, yet it still only accounts for a fraction of the total email service industry.

SendGrid posted a 32% growth rate during the second quarter and a gross profit margin of 75%. Besides raising Twilio's profitability profile, the companies think they will be able to promote more growth than the two could accomplish alone by cross-selling services to customers. They also plan to benefit from shared research and development efforts.

Two investment analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $76.55.

The Trade……..

Option trade to consider: Buy the TWLO DEC 21 2018 75.000 CALL at approximately $7.60.

The Result So Far………

Twilio Inc. shares had already tripled on the year heading into Tuesday afternoon’s earnings report, but that was just a prelude to a record day on Wednesday that shows growing belief the little-known software company could be a giant in the making.

Twilio stock gained 35.4% Wednesday, easily the best one-day gain in history for the stock, which has now quadrupled on the year with a gain of 307%.

Twilio’s market cap nearly topped $10 billion for the first time Wednesday, closing at a valuation of $9.9 billion.

The big gains could be purely a function of Twilio’s financial performance. While sales growth usually trends down as companies mature and grows larger, Twilio has managed to accelerate already impressive revenue growth while showing profit by some metrics. In Tuesday’s report, Twilio sales grew more than 68% after increasing sales a bit more than 40% in the same quarter a year ago, and reported adjusted profit for the second consecutive quarter and second time in company history.

JMP Securities analyst Patrick Walravens explained the Twilio lovefest from investors. He compared the company favorably to Amazon.com Inc.’s Amazon Web Services cloud-computing division, in that they both focus on providing tools to developers that are essential to their job, and profiting when those developers’ apps grow large.

“AWS started with three very commoditized products — compute, storage and bandwidth — but then they built layer upon layer on top of that,” the analyst explained. “Twilio in a very similar way begins with a couple of equally commoditized products, which is voice and messaging, and built a set of more sophisticated tools, and on top of more sophisticated tools they’ve built what is effectively applications.”

Walravens had a buy rating and increased his price target to $89 from $86 price after the report, but sees the potential for even greater gains from the company.

“We cover 60 software companies, and if there is one that has the opportunity to become a $10 billion-a-year revenue kind of company, it’s Twilio,” Walravens said.

After 11 analysts increased their price targets in reaction to Tuesday’s earnings report, Walravens is not the most bullish — he is actually below the average price target of $92.12. In total, 18 of 19 institutional analysts covering Twilio recommend buying the stock.

The Profits.....

So, for “Earnings Predictions” members, who managed to execute this trade recommended by Stock Options Made Easy; potential profits of 283% were there for the taking; and more likely to follow!

Entering the option trade lower than originally thought at $7.60 at $6.10 or less; and the price of the option reached $23.34 yesterday; a profit of 283% was made in just a couple of days. Therefore, one options contract would provide a profit of $1724.00.

A NICE FINISH TO THE WEEK!

Moving Forward…..

The company has a catalog of software covers voice, text, chat, and video communications tools, but email has proved a big gap in its suite. That's where SendGrid comes in, as it is the leader in cloud-based email services. SendGrid says it has over 74,000 customers and sends emails to more than half of the world's email addresses, yet it still only accounts for a fraction of the total email service industry.

SendGrid posted a 32% growth rate during the second quarter and a gross profit margin of 75%. Besides raising Twilio's profitability profile, the companies think they will be able to promote more growth than the two could accomplish alone by cross-selling services to customers. They also plan to benefit from shared research and development efforts.

Two investment analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $76.55.

CONCLUSION…….

As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but it is obvious that it applies in this case; and during earnings season this strategy of predicting earnings has been very profitable.

Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Strategies to Consider……

"When To Exit A Trade Based On Earnings?"

It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” .....READ MORE.....

also....

"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

If you not a member and interested in being part of this profitable action just CLICK HERE.

Other Membership Options…….

If you interested in "Earnings Predictions" just click here……

or "Mentorship Program".....click here....


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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