Twilio (NYSE: TWLO) stock plunged on Thursday following several analysts’ decision to lower their price target for the company’s shares.
Twilio (TWLO) faces a turbulent market as analysts slash price targets following disappointing guidance for the upcoming quarter.
Needham has downgraded TWLO stock, revising its price target from $80 to $71 per share, marking a 1.8% decrease from its previous close. This adjustment falls below the analysts’ consensus forecast of $71.36 per share.
The downgrade from Needham adds to the growing pessimism surrounding TWLO stock. Other financial institutions are following suit, with TD Cowen reducing its target by $5 and Macquarie lowering it by $1.
These price target cuts come shortly after the company issued weaker-than-expected guidance for the next quarter. Twilio anticipates quarterly revenue between $1.025 billion and $1.035 billion, falling short of Wall Street’s projected revenue of $1.052 billion for the same period.
Nonetheless, Twilio concluded 2023 on a positive note. In its fourth quarter of 2023, Twilio reported a 5% year-over-year increase in revenue to $1.08 billion, while its adjusted (non-GAAP) net income nearly quadrupled over the same period to $0.86 per share. Contrarily, Wall Street analysts had predicted earnings to be just $0.58 per share, with revenue approximating $1.04 billion.
Twilio (NYSE: TWLO) Stock Price Action
TWLO stock plummeted 15.39% to close at $61.15 on Thursday. The traders had exchanged hands with 19,085,838 (19.08 million) shares compared to the average daily trading volume of 2.64 million.
Salman Akhtar is a finance, stocks, and technology journalist with years of experience across various news organizations. He has contributed his expertise to outlets such as 24NewsHD, TrimFeed, The Voice Pakistan, and TheTechBasic. Salman is passionate about making complex topics accessible to a broad audience. His dedication to delivering accurate and timely information has established him as a trusted voice in the industry. Read Full Bio
