why is twilio stock down

by Assunta Weber Published 2 years ago Updated 2 years ago

Why has the Twilio stock price been going down? The price soared in 2020 as investors piled into companies that were expected to benefit from the Covid-19-triggered push to remote working. However, the stock has fallen since due to concerns over Twilio’s growth prospects in the wake of the pandemic and a lack of enthusiasm for growth stocks.

Investors can glean Twilio's deteriorating adjusted profitability margins over time. It's clear that Twilio's adjusted gross margins have been trending down despite its robust topline growth. The bifurcation over its growth and profitability has baffled us, particularly its gross margins.Mar 20, 2022

Full Answer

Is Twilio (Twilio) a good stock to buy?

Nov 13, 2021 · Twilio (TWLO 11.66%) shareholders have had a rough year. The stock has underperformed the broader S&P 500 by a wide margin, and unfortunately, things got worse when the company delivered its third ...

Should Twilio’s de-rating from reopening surprise investors?

Apr 06, 2022 · April 6, 2022. Twilio (NYSE: TWLO) stock closed down more than 7% today without a company-specific catalyst. However, some suspect the plunge was a result of the recently released minutes from the...

Why are Twilio shares tumbling Thursday?

Dec 24, 2021 · TWLO Stock Under Pressure. Twilio announced third-quarter revenue of $740.2 million. Losses almost doubled from $112.3 million last year to $232.3 million. Still, on a non-GAAP EPS basis, it ...

Is Twilio (TWLO) a “underperform or outperform” stock?

Mar 03, 2022 · Shares of Twilio (NYSE: TWLO), a cloud-based communications platform provider, were tumbling Thursday as investors grew increasingly concerned about high inflation, upcoming interest rate hikes by...

See more

Mar 20, 2022 · The market has pummeled Twilio Inc. ( NYSE: TWLO) stock over the past year. It has been a dramatic fall from grace for the pandemic favorite, having lost 65% of its value since February 2021....

Why are twilio shares dropping?

What happened. Shares of Twilio (TWLO -1.39%), a cloud-based communications platform provider, were tumbling Thursday as investors grew increasingly concerned about high inflation, upcoming interest rate hikes by the Federal Reserve, and the conflict in Europe.Mar 3, 2022

Is twilio good stock to buy?

Its quality score of 41/100 is poor. The company will not earn a higher quality score until its operating margins improve. Its expenses are too high, weighing negatively on its return on investment. Twilio's business model is questionable.Mar 31, 2022

Will twilio stock go back up?

The 27 analysts offering 12-month price forecasts for Twilio Inc have a median target of 210.00, with a high estimate of 320.00 and a low estimate of 127.00. The median estimate represents a +111.63% increase from the last price of 99.23.

Is twilio losing money?

So How Risky Is Twilio? Statistically speaking companies that lose money are riskier than those that make money. And the fact is that over the last twelve months Twilio lost money at the earnings before interest and tax (EBIT) line. Indeed, in that time it burnt through US$148m of cash and made a loss of US$950m.Apr 11, 2022

Is Twilio a Buy Sell or Hold?

Twilio has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 22 buy ratings, no hold ratings, and no sell ratings.

Is Twilio overvalued?

Compared to an average industry price-to-book ratio of 4.95, TWLO is valued in line with its industry peers as the stock has a price-book ratio of 4.05. It seems to be even relatively undervalued. On the other hand, I argue that TWLO is overvalued now turning to forward valuation metrics.Jan 5, 2022

Does twilio have a future?

Twilio began changing course in the fourth quarter, which it's due to report Feb. 9. Revenue is now expected to be $762 million, meaning 2021 revenue will be 56% ahead of 2020.Jan 20, 2022

What is target price for Twilio?

Stock Price Target TWLO

High	^$320.00
Median	^$210.00
Low	^$127.00
Average	^$213.86
Current Price	^$110.79

How big can twilio get?

Massive Total Addressable Market Opportunity

According to Twilio, its total addressable market was valued at $62 billion in 2020 (before Segment acquisition), and this TAM could rise to more than $87 billion by 2023.Mar 3, 2021

Is Twilio undervalued?

(NYSE:TWLO) Suggests It's 49% Undervalued.Jan 17, 2022

Who are Twilio's competitors?

Competitors and Alternatives to Twilio

Vonage.
MessageBird.
Plivo.
Vidyo.
Alvaria.
Infobip.
Plum Voice.

TWLO Stock Under Pressure

Twilio announced third-quarter revenue of $740.2 million. Losses almost doubled from $112.3 million last year to $232.3 million. Still, on a non-GAAP EPS basis, it earned a penny, or $8.2 million. Even after losing 10% of its value in the month and 40% from 52-week highs, the market capitalization is almost $50 billion.

Modest Slowdown

In Q3, Twilio’s dollar-based net expansion rate fell slightly, from 137% in Q3/2020 to 131%. After it acquired Zipwhip and Segment, completed in July 2021 for $850 million, its communications platform should attract growth.

Opportunity For TWLO Stock

Twilio will sustain organic growth of at least 30% or more in the next three years. It has broad exposure geographically. Segment demonstrated strong quarterly performance. This gives management the confidence that its business momentum will continue.

Risks

Apple’s advertising identifier advertisers, called IDFA, may potentially limit a customer’s view of data. Still, Twilio believes it will provide the antidote to IDFA tag changes. For example, its customers will have first-party signals from customers as opposed to third-party data.

Downtrend Chart and Fair Value

In the chart below, Twilio stock is still working off bearish selling volume. It faces resistance at the 50-day and 200-day simple moving average.

Your Takeaway

Over-priced software stocks are in a bear market. Twilio is a marketing and communications platform that posted its first quarterly revenue. After adding new features and rolling out the improved solution in 2022, growth could expand. Investors should keep this stock on the radar.

When is Twilio earnings call?

How can I listen to Twilio's earnings call? Twilio will be holding an earnings conference call on Thursday, July 29th at 5:00 PM Eastern. Interested parties can register for or listen to the call using this link or dial in at 416-621-4642 with passcode "1338878".

Who underwrote the IPO?

Goldman Sachs and J.P. Morgan served as the underwriters for the IPO and Allen, Pacific Crest Securities (a division of KeyBanc Capital Markets), JMP Securities, William Blair and Canaccord Genuity were co-managers.

Twilio stock analysis: TWLO shares enjoyed Covid boom

Twilio is a prominent name in the world of business communications. It enables phones, VoIP and messaging to be embedded into web, desktop and mobile software.

Twilio shares dip amid strong earnings

The most recent share price falls this year, which are largely being attributed to a broader growth stock selloff, come despite the company’s strong recent results.

Twilio full-year figures

Twilio reported revenue of $2.84bn for full year 2021, up 61% year-over-year. The figure included $200.9m from Twilio Segment and $55.4m from Zipwhip.

Twilio stock news: Launch of Twilio ventures

In early December 2021, the company announced the launch of Twilio Ventures and its new $50m fund designed to champion the next generation of customer engagement businesses.

Twilio stock price prediction: Analyst sentiment

Danni Hewson, financial analyst at AJ Bell, acknowledged that the TWLO stock price has dropped significantly this year, but doesn’t lay the blame at the company’s feet.

Twilio (TWLO) stock forecast: Targets for 2022, 2025 and 2027

Is Twilio stock a buy, sell or hold? According to Twilio share price forecast from Wallet Investor (as of 14 February), the stock was a “good long-term (one year) investment” that could rise 11% to $212.50 over the next 12 months from its last closing price of $190.88.

Stock FAQs