The Daily Beat - December 17, 2025 📈

There were no S&P 500 earnings reactions on Tuesday, but we want to tell you about one of our favorite turnaround stories in the market.

Twilio $TWLO has spent nearly six years in purgatory. 

After becoming one of the defining software winners of the late-2010s cloud boom, the stock collapsed alongside the rest of high-multiple growth in 2021 and spent years working through the consequences. 

Excess optimism was wrung out, expectations were reset, and sentiment shifted from euphoria to apathy. That’s usually how real bottoms form, not with fireworks, but with exhaustion. 

What matters now is that Twilio is no longer a turnaround story. It’s an execution story again.

At its core, Twilio is central to modern digital communication. Messaging, voice, email, and authentication are the pipes that power customer engagement across the internet. 

Every two-factor login, every automated text message, and every AI voice agent that calls on your behalf run through infrastructure like this. 

Twilio’s advantage has always been scale, reliability, and developer mindshare.

What the market struggled with over the last few years wasn’t the platform's relevance, but its economics. That’s what has changed!

In the most recent quarter, Twilio delivered one of its strongest operational performances in years. 

Revenue hit a record $1.3B, profitability surged, and free cash flow reached levels that would have been unthinkable during the company’s hyper-growth phase. 

Messaging and voice both accelerated, software add-ons grew faster than the core business, and dollar-based net expansion turned higher again. 

Voice AI adoption exploded, ISV and self-serve channels grew by more than 20%, and management raised full-year guidance across revenue, margins, and cash flow. 

This wasn’t financial engineering. It was a broad-based execution.

More importantly, the market noticed immediately.

Following the earnings report, TWLO posted its best earnings reaction since 2020, rallying nearly 20% in a single session. 

The last time the stock saw a reaction of that magnitude, it doubled in the months that followed as buyers overwhelmed supply and momentum entered escape velocity. 

These types of reactions don’t happen randomly. They occur when positioning is wrong, expectations are too low, and the fundamentals shift faster than investors can adjust.

Since that surge, the price has done exactly what you want to see after a major inflection: it has digested the gains without giving them back.

TWLO has spent weeks consolidating sideways, absorbing supply, and tightening into a textbook bullish continuation pattern. 

On Tuesday, the stock price reached its highest level since February as buyers reasserted themselves. A breakout from here would complete a textbook multi-year bearish-to-bullish reversal and shift the path of least resistance higher toward the 2021 peak.

In other words, the stock could double from here.

After years of languishing, TWLO's technicals and fundamentals are pointing higher again.

Happy Hump Day

-The Beat Team