TWLO Trades Near Record Highs After Zocdoc Deal

The stock is just coming off an impressive post-earnings bull gap

Deputy Editor
May 13, 2020 at 9:16 AM
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The shares of cloud concern Twilio Inc (NYSE:TWLO) are up 1% to trade at $192.16 this morning, right above last night's all-time closing high of $190.29, after announcing that its Programmable Video will power Zocdoc's new free telehealth video solution. The HIPAA-compliant video service will help healthcare professionals easily access video visits, as virtual care becomes more vital during the COVID-19 pandemic. 

TWLO just came off its seventh consecutive win, facilitated, in part, by a massive May 7 post-earnings surge, which put the security well above it former ceiling at the $130 level. The security is close to doubling in 2020, up 93.6% coming into today, and is now on pace for its biggest month ever, up nearly 70% so far in May.

The software name picked up plenty of bull notes after last week's quarterly report, with 16 analysts now calling it a "buy" or better, while the remaining four say "hold." There's still room for some price-target hikes, should TWLO continue this positive price action. Meanwhile, the consensus 12-month price target of $164.86 is a 14.8% discount to current levels. 

The equity still has plenty of bears at its beck and call, too. At the International Securities Exchange (ISE), Cboe Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TWLO sports a 50-day put/call volume ratio of 0.74, which sits in the 92nd percentile of its annual range. This suggests a healthier-than-usual appetite for long puts of late. 

Echoing this is TWLO's Schaeffer's put/call open interest ratio (SOIR) of 1.34, sitting higher than all but 6% of readings from the last year, meaning short-term options players have rarely been more put-biased. 

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