Twilio and JFrog are some of the Nasdaq’s biggest midday movers
Wall Street’s rally is in full swing today, even as January retail sales disappoint. Among the notable movers in the tech sector today are cloud stocks Twilio Inc (NYSE:TWLO) and JFrog Ltd (NASDAQ:FROG), bookending the tech-heavy Nasdaq Composite (IXIC) following the companies’ respective earnings reports.
Twilio Issues Dreary Current-Quarter Guidance
At last glance, Twilio stock is 15% lower to trade at $61.45, one of the worst stocks on the IXIC today. TWLO is trading at its lowest level since mid-November, after the consumer engagement company reported soft revenue guidance for the current quarter, as well as lower-than-expected total active users. The only silver lining was Twilio’s fourth-quarter adjusted earnings and revenue that both beat Wall Street’s expectations.
The shares are down 19.1% year-over-year and 7.2% in 2024. The equity is now back below its 100-day moving average for the first time since mid-November. No less than four analysts cut their price targets, while Northland Capital downgraded Twilio stock to “market perform.” More downgrades and/or price target cuts could be on the way considering 14 of 30 covering brokerages still rate TWLO a “buy” or better, and the 12-month consensus target price of $73.14 is a nearly 19% premium to current levels.
JFrog Stock Leaps to More Than 2-Year Highs
FROG is up 25.6% to trade at $46.59, one of the best stocks on the IXIC. The software development firm turned in adjusted earnings of 19 cents per share on revenue of $97 million, both of which were well above analyst’ expectations. The equity is trading at its highest mark since July 2021, and now boasts a 109% nine-month lead thanks to today’s bull gap. No less than 10 brokerages lifted their price targets, including Needham who moved all the way up to $55 to imply an 18% upside to JFrog stock’s current perch.
Short-term options traders are cheering the bullish price action; FROG’s Schaeffer’s put/call open interest ratio (SOIR) of 0.12 that sits lower than all other reading from the past year.