Akamai, Twilio, Etsy Downgraded

Akamai Technologies, Twilio, and Etsy stocks received bearish analyst attention

May 3, 2017 at 10:09 AM
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Analysts are weighing in on cloud services stocks Akamai Technologies, Inc. (NASDAQ:AKAM) and Twilio Inc (NYSE:TWLO), as well as e-commerce issue Etsy Inc. Here's a quick roundup of today's bearish brokerage notes on shares of AKAM and TWLO, as well as ETSY stock.

Akamai Technologies Issues Weak Guidance

AKAM stock has plunged 15% to trade at $53.10, and is short-sale restricted (SSR), after the tech company offered up a lower-than-expected current-quarter forecast -- though Akamai Technologies, Inc.'s first-quarter results came out on top. What's more, the shares were hit with a barrage of bearish brokerage attention, including downgrades to the equivalent of a "neutral" at D.A. Davidson, SunTrust Robinson, Wells Fargo, and Guggenheim. AKAM stock is now trading at its lowest point since late October, slicing through several key technical levels. AKAM options traders were bracing for a post-earnings slump. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 0.94 ranks in the 77th annual percentile, meaning long puts have been initiated relative to calls at a quicker-than-usual clip.

Uber Sends Twilio Stock Spiraling

TWLO lowered its current-quarter and full-year sales forecasts, with CEO Jeff Lawson citing a drop in revenue from key customer Uber. Adding to TWLO's woes are a downgrade to "sector weight" from "overweight" at Pacific Crest, and no fewer than three price-target cuts. Against this backdrop, Twilio Inc shares have shed 27% to trade at $24.79, and are on the SSR list. This is sure to please TWLO short sellers, who have been blasting the stock ahead of earnings. Short interest jumped 10.3% in the most recent reporting period, and now accounts for 34.3% of the stock's available float.

ETSY Stock Dives After Earnings, C-Suite Shake-Up

ETSY stock is trading down 11% at $10.10 -- and is SSR -- after the company reported disappointing first-quarter earnings. Additionally, Etsy Inc said it was replacing CEO Chad Dickerson with board member Josh Silverman, and is cutting about 8% of its workforce. Wall Street's been quick to chime in, with Wedbush, Loop Capital, and Maxim all lowering their respective price targets. Today's post-earnings plunge echoes ETSY's longer-term troubles, with the shares off more than 37% from their early October annual high of $16.05. ETSY options traders, meanwhile, have been buying to open puts over calls at a near-annual-high clip in recent weeks. At the ISE, CBOE, and PHLX, the stock's 10-day put/call volume ratio of 5.22 ranks just 2 percentage points from a 52-week peak.


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