What's Going On With Twilio Stock Thursday?

Twilio Inc TWLO shares are trading higher Thursday. The stock appears to have spiked higher following reports that a Dutch messaging startup is considering making a bid for Twilio.

What Happened: According to a report from The Information citing people familiar with the discussions, Dutch messaging startup Bird is in talks with investors to raise money to try to acquire competitor Twilio.

The report indicates the company is backed by Accel Partners and was previously known as “MessageBird.”

The news comes as Twilio faces pressure from at least two activist investors to make significant changes or explore a potential sale. Twilio shares are up about 7% over a one-year period. The stock has been outpaced by the S&P 500 over the same period with the index up more than 17% over that time.

Twilio is set to report fourth-quarter financial results on Feb. 14. The company is expected to report earnings of 58 cents per share on revenue of $1.043 billion, according to Benzinga Pro.

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Is TWLO A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Twilio‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Twilio does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 13.6%, you'll need to buy a share of Saba Cap Inc & Opps by Feb. 8. Once done, you can expect to receive a nominal payout of $0.09 on Feb. 29.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Twilio will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

TWLO Price Action: Twilio shares were up 2.41% at $72.02 at the time of publication, according to Benzinga Pro.

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