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Twilio Stock Soars After Inclusion in S&P MidCap 400 Index

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 8/15/2025, 11:33 am ET 8/15/2025, 11:33 am ET | 6 min 6 min read
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Twilio Inc.’s stocks have been trading up by 5.46 percent amid investor optimism following strategic partnership announcements.

  • Q2 earnings surprised positively, with an EPS of $1.19, much higher than the expected $1.05, along with revenue hitting $1.23B.

  • Future projections show fiscal year 2025 free cash flow between $875M and $900M, along with revenue growth of 10%–11%.

  • The Dollar-Based Net Expansion Rate hit 108% for Q2 showcasing strong customer engagement and growing active accounts to over 349,000.

  • Analyst James Fish maintains an ‘Overweight’ rating, raising expectations for Twilio following robust demand for AI-driven services like Messaging and Voice AI.

Candlestick Chart

Live Update At 11:32:56 EST: On Friday, August 15, 2025 Twilio Inc. stock [NYSE: TWLO] is trending up by 5.46%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Twilio Takes Giant Leap With Robust Q2 Results

In the world of finance, every little detail can cause ripple effects—much like a pebble in a pond. Twilio recently threw such a pebble by reporting its second quarter earnings, surpassing expectations and impressing market watchers. For the quarter ending in June 2025, Twilio boasted an EPS of $1.19 against predictions of $1.05, a pleasant surprise that raised eyebrows across Wall Street. Not only did earnings shine, but the revenue raked in also climbed to $1.23B, overshooting the expected $1.19B. It’s like finding an extra chocolate chip cookie in your lunchbox when you thought there was only one.

Additionally, the future path laid out for Twilio paints a promising picture, projecting free cash flow for the fiscal year between $875M and $900M, and an expected revenue growth of 10%-11%. This aligns with Twilio’s broader vision to scale heights in the tech space, leveraging its prowess in the communications field. Even more telling is their impressive Dollar-Based Net Expansion Rate of 108%, reflecting astute strategies in client acquisition and retention. It’s like starting a lemonade stand and not only selling out, but having people ask how they can reserve their lemony refreshment for the next day.

Entering a New Tier with S&P MidCap 400

Twilio’s ascendancy into the S&P MidCap 400 index sparked a 5% jump in its stock price, peaking at $106. This achievement is akin to being elected class president—an acknowledgment of the firm’s potential and steady climb. The inclusion replaces Amedisys following its acquisition by UnitedHealth Group. This calculated move should strengthen Twilio’s standing among investors, providing increased visibility and credibility in the marketplace. For a company, this elevation is like earning a gold star, signaling it’s doing something right.

More Breaking News

The stock’s steady growth reflects the confidence investors place in Twilio’s ability to forge ahead in a fast-paced tech industry. Analysts have taken note of Twilio’s rising trajectory, with high ratings and target increases despite facing challenges like reduced gross profit margins due to A2P fees and a heavier Messaging mix.

Market Dynamics: AI and Messaging Trends Fuel Demand

Twilio’s emphasis on AI-driven services like Messaging and Voice AI mirrors a wider trend where companies worldwide pivot toward integrating AI technologies to meet consumer demand and expand capabilities. This strategic positioning maintains momentum with sustained interest in these AI products since there’s no sign of the technology hype slowing down.

While Twilio charges ahead with these innovations, Piper Sandler analyst James Fish highlights the potential pitfalls—such as the absence of a raised EBIT guide amidst ongoing investments and anticipated adjustments in business disclosure. Yet, the stock remains promisingly rated, with projections setting sights on higher price targets. This analysis hints that while there may be bumps in the road, Twilio has the resilience to navigate through unforeseen detours.

Conclusion

Twilio’s recent news stories illustrate a resilient company taking bold steps, sparking enthusiasm among traders and market analysts alike. Their strive for excellence in financial performance, coupled with deftly maneuvering through the competitive landscape, reflects a company with its eye on the prize. As part of the S&P MidCap 400, they’ve bolstered their presence on Wall Street, a show of confidence that’s warranted with efforts to expand AI capacities and improve customer-base efficiencies.

As millionaire penny stock trader and teacher Tim Sykes says, “You must adapt to the market; the market will not adapt to you.” This philosophy is evident in Twilio’s strategy, where adaptability is key. With financial fundamentals and innovative foresight backing their moves, Twilio stands at the precipice of becoming a potent force in the tech world. Traders can find reassurance in the agility driving Twilio, a compelling narrative unfolding where growth, innovation, and strategic change intersect. As Twilio continues charting this dynamic course, it remains an intriguing case study for understanding market ups and downs at the intersection of telecommunications, innovation, and trading foresight.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”