Trade Tracker: Joe Terranova buys Twilio
Speakers
Joe Terranova
— Senior Managing Director, Virtus Investment Partners
Brian Sullivan
— Anchor, CNBC (Last Call / Power Lunch)
Summary
Joe Terranova explains a tactical re-entry into Twilio, citing relative outperformance versus software, a technical breakout, and support near the 200-day moving average. He cautions that broader software may still be a value trap even as he buys Twilio. The discussion also touches on Dan Ives' AI 30 buy-on-weakness view and tech-sector dispersion.
- Joe Terranova says he bought Twilio tactically after it pulled back toward its 200-day moving average.
- He cites Twilio's roughly 10% 12-month outperformance versus software and its prior technical breakout.
- He previously sold Twilio at 137 when he expected software to underperform semis.
- He views Twilio near 119 as offering a favorable risk/reward with support below.
- He warns it may be too early to buy broad software weakness and calls it a potential value trap.
- The host relays Dan Ives' view that AI 30 names are buyable on weakness.
- Terranova notes increased performance dispersion within tech and says not all tech stocks are equal.
Ideas
Tactically buying Twilio near technical support.
Joe Terranova is tactically buying Twilio after it pulled back toward its 200-day moving average near 115, which he views as supportive. He likes that Twilio has outperformed the software industry by about 10% over the past 12 months and that the stock broke out technically earlier; he previously bought around 130 and sold at 137 when he expected software to be punished relative to semis, and now he is a buyer near 119 with a very small risk and a good reference point below, aiming to take advantage of the market noise.
Software may be a value trap.
After noting increased dispersion within tech, Joe Terranova says it may be too early to buy weakness in software and that software could be a value trap. He frames broad software exposure as risky even though he is making a separate tactical purchase in Twilio.
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