Twilio Stock Tests Key Support Following Breakout

By Schaeffer's Digital Content Team | May 29, 2026, 11:47 AM

Subscribers to Schaeffer's Weekend Trader options recommendation service received this TWLO commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Shares of Twilio Inc (NYSE:TWLO) pulled back to the 20-day moving average following a multi-year high earlier this month. This trendline sits just above 12 times the initial public offering (IPO) price of $15 and an earnings reaction high that saw a significant gap to $184.11.

Short interest has climbed 38% since mid-December – a build that began with the shares at $150 when trading at the January 2025 peak. It would take shorts three days to cover, as the shorts are underwater following earnings. Also making it a good bullish bet, software stocks were feared after AI threats, but some are mounting a comeback amid strong earnings.

Our recommended call has a leverage ratio of 5.9 and will double on a 17.1% rise in the underlying equity

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