Twilio nyse Twlo Stock Take a Dive Amidst Analysts' Bearish Sentiments

Twilio (NYSE: TWLO) Stock Take a Dive Amidst Analysts’ Bearish Sentiments

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.