Cramer Comments Keep Twilio Inc (TWLO) Flying High

Twilio Inc (TWLO) is ending its fifth session of public trading with another big gain

Jun 29, 2016 at 3:43 PM
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Twilio Inc (NYSE:TWLO) -- which enjoyed a huge first day of public trading last Thursday -- is looking to finish its fifth session with a bang. The stock has added 19.7% to trade at $35.82, following upbeat comments from CNBC's Jim Cramer. Notably, Cramer said the software firm "is the backbone behind Uber and WhatsApp" and its stock is "not done going higher." If that's true, TWLO could be in rare company.

So far, TWLO has ended just one session with a loss -- Friday, June 24. Not only was that the stock's second day of trading after notching a cool 91.9% first-day gain, it was also the session when the broader market plummeted following the "Brexit" referendum. Should TWLO end today's session at its current trading price, it will boast a one-week post-IPO return of 138.8% -- the second-best performer among recent big-name IPOs.

First week three month IPO returns

The only one of the 67 stocks included in the study that posted a larger one-week return was Fiat Chrysler Automobiles NV (NYSE:FCAU), which gained a whopping 384.6% in its first five sessions. That doesn't necessarily bode well for TWLO long term, though -- FCAU is currently trading at a deep discount to its IPO price. Still, in its first three months, FCAU had more than doubled.

Overall, a successful first week seems to be a bullish indicator over the short term. Of the stocks that returned 10% or more in their first week of trading, the average three-month return was 40% -- with nine of 10 positive. By contrast, 34 of 67 stocks posted a negative one-week return. Of those 34, only 12 had a positive return three months after their IPOs. 

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